Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
5 Cards in this Set
- Front
- Back
What makes retirements benefits complex in FS's |
Teaa -timescale=long -estimation prodedures (e.g for measuring thr value of liabs) -amounts=large -assumptions needed: due to high levels if uncertainty over long timescale
|
|
Why has benefit plans become less popular |
Cost=uncertain Life expectancy =higher Interest rslates=lower Disappointing returns on investment-assets under performing compared to projections requiring additional firm contributions |
|
G |
G |
|
Current service cost |
The cost of providing pension benefits to employees for the current period Its influenced by actuarial assumptions |
|
Interest cost |
Unwinding of the effect if discounting on the pension asset or liab If a pension is: -in an asset position: interest income is recognised -in a liab position: interest cost is recognised |