chapter 17

The employer's obligation is satisfied by making the appropriate amount of periodic contribution.

The benefits to be received are usuallydetermined by an employee's highest salary.

Requires an employer to contribute a certain sum each period, based on the formula.

All of these statements are true abont a defined contribution plan.

Retirement benefits are based on the plan's benefit formula.

The defined benefit plan must be fully funded.

Makingthe periodic contributions to a funding agency to ensure that funds areavailable to meet claims.

The expense recognized each period is equal to the cash contribution to the plan.

Defines the benefits that the employee will receive a t the. time of retirement.

Defined benefit plan

Contribution to the plan

Net interest

Remeasurements

All of these are included in remeaurements of defined benefit plan.

Reported as an expense in the period the plan is amended

The difference between interest expense on defined benefit liability, interest expense on effect of asset ceiling and interest income on plan assets

Both assets held by a long-term employee benefit fund and qualifying insurance policy

Includes interest, dividends and change in the fair - value of the plan assets during the year.

The assets can be returned to the entity even if the assets are insufficient to meet benefit obligations.