Learning objectives (with links to notes embedded)

• LO7-01: Explain the fundamental differences between a defined contribution pension plan and a defined benefit pension plan.

• LO7-02: Distinguish among the vested benefit obligation, the accumulated benefit obligation, and the projected benefit obligation (PBO).

• LO7-03: Describe the five events that might change the balance of the PBO.

• LO7-04: Explain how plan assets accumulate to provide retiree benefits and understand the role of the trustee in administering the fund.

• LO7-05: Describe the funded status of pension plans and how that amount is reported.

• LO7-06: Describe how pension expense is a composite of periodic changes that occur in both the pension obligation and the plan assets.

• LO7-07: Record for pension plans the periodic expense and funding as well as new gains and losses and new prior service cost as they occur.

• LO7-08: Understand the interrelationships among the elements that constitute a defined benefit pension plan.

• LO7-09: Describe the nature of postretirement benefit plans other than pensions and identify the similarities and differences in accounting for those plans and pensions.

• LO7-10: Explain how the obligation for postretirement benefits is measured and how the obligation changes.

• LO7-11: Determine the components of postretirement benefit expense.

• LO7-12: Discuss the primary differences between U.S. GAAP and IFRS with respect to accounting for postretirment benefit plans.