the financial statements of a defined benefit pension plan provide only limited info 4375299

The financial statements of a defined benefit pension plan provide only limited information as to its economic condition. The following information relates to the Lincoln County Firefighters Pension Plan (dollar amounts in thousands): Beginning-of-Year Balances Cash and cash equivalents, January 1…………………………………………………….. $ 67 Marketable securities and other investments at fair value, January 1 ……….. 3,180 Current liabilities to retirees, January 1………………………………………………………. 4 Actuarial accrued liability, January 1……………………………………………………..3,430 Transactions during the Year Contributions received during the year from employers and employees……….. 138 Benefits to which retirees were entitled during the year…………………………….. 120 Benefits actually paid to retirees, including amounts owed from prior year….. 122 Interest and dividends earned during the year………………………………………….. 145 Net appreciation in fair value of marketable securities and other investments (i.e., realized and unrealized gains) during the year……………… 36 Investment management costs………………………………………………………………….. 10 Administrative expenses………………………………………………………………………….. 35 End-of-Year Balances Cash on hand, December 31………………………………………………………………….. 92 Marketable securities and other investments at fair value, December 31…… 3,307 Current liabilities to retirees, December 31…………………………………………………. 2 Actuarial accrued liability, December 31………………………………………………. 3,690 1. Prepare a statement of plan net assets as of January 1. You might not need to include all of the data provided. 2. Prepare a statement of changes in plan net assets for the year. 3. Prepare a statement of plan net assets as of December 31. 4. Comment on the significance of the data provided that you did not include in your statements. Where in the plan’s financial report is this information reported? 5. Determine the amount of the unfunded actuarial accrued liability as of December 31, assuming that the actuarial value of the plan assets is the same as their fair value. (Some-times actuaries use average values over several years rather than point-in-time values as of the date of the financial statements.) View Solution:
The financial statements of a defined benefit pension plan provide

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