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Required Reporting

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Submitted By larrissa0000
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ABC Financial 123 Financial Parkway October 25, 2011

TO: ABC Financial

FROM: Larrissa Thompson

SUBJUCT: Required Reporting

This memo is to notify the company of required reporting for defined contribution, defined benefit, and other postretirement plans. It will also discuss what should happen when trying to eliminate two segments.
Once a company acquires another business the operations, policies, and practices will have to change. When looking at pensions they are special in the category of liabilities. This expense for periodic costs isn’t tied to changes in the balance sheet. When a pension plan is established a company must make estimates of future obligations, and it must reflect in the financials as long term liabilities. There are some obstacles that the company may face while trying accurately to forecast such as not knowing future employee salary levels, which the future benefits are based on, vesting events, and investment active of fund assets. The company must apply the proper discount rate that should be selected to discount the estimated obligations of the future to a present value.
There are reporting requirements that should be considered for a business with multiple business segments that has separate postretirement plans and plans to eliminate them. The reporting for defined contribution, defined benefits, and other postretirement plans should be researched and the proper procedures on eliminating the two segments have to be explained or understood. According to Schroeder, Clark and Cathey (2005), organizations that are offering defined contribution pension plans must disclose the following information in the financial statement. The basis for determining contribution, employee groups included, existences of the plan and information affecting comparability from period to period. The FASB ASC 715

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