BUS 321 Lecture Notes - Lecture 9: Legal Personality, Basis Of Accounting, Parental Leave

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 321
• Professor: Jaqueline Faubert

Document Summary

Pension and other post employment benefits (ensure tax deductible) Pension and other post retirement plans: health care, life insurance. Post employment benefit plans: severance, long term disability. Compensated absences: parental leave, sabbatical leaves, accumulated sick days. Cover primarily benefits after retirement and ongoing benefits after early resignation. Provide benefits for service provided during employment. Employer sponsor, contribute, incur cost => accounting for employer. Receive contribution, administer asset, pay beneficiaries => accounting for pension: ensure proper allocation of pension cost to service year (issue of pension expense and obligation, funding) Funded: employer set future benefits in a separate legal entity. Vested: benefits belong to employees even not working anymore. Defined periodic contribution by employer + employee. Plan trustee: own, invest, distribute all assets to employees. Future benefits variable on rate of return. Employee bear economic risk (no guarantee of benefits made by employer) Variable periodic contribution by employer + employee. Plan trustee: own assets but belong to employer.