Posted by & filed under Advanced Accounting, Canadian Economy, Financial Reporting and Analysis.

Description: Interest rates continue to fall, signalling bad times for pension funds and pension recipients. As rates fall, the present value of the liabilities in defined benefit pension plans increase. An increase in liablities, often means that a company must contribute more cash to the pension plan.

Source: Globe and Mail.com

Date:  February 20, 2015

Link:  http://www.theglobeandmail.com/globe-investor/investment-ideas/big-deficits-mean-big-cash-contributions-to-corporate-pensions/article23135545/

Discussion Points:

1) How much longer do you think the low interest environment will continue?

2) What are some of the key financial reporting issues related to pension plans?

3) It seems that in a number of well publicized cases, defined benefit pension plans appear to be in danger of being replaced. What can accountants do to contribute to the discussion of the future of pension plans?

Leave a Reply

Your email address will not be published.