Description: One of the big factors in pension accounting is the discount rate. For the last couple of years, the Auditor General of Canada has expressed concern that the federal government may be using a rate that is too high. The government has decided to respond to his concerns by adopting a higher rate, meaning that the federal deficit will be higher than expected.
Date: October 19, 2018
1) As you look forward to your career after graduation, what employee benefits are you looking for?
2) The article notes a government executive stated “We are modernizing our accounting to make it more businesslike, per the auditor general’s recommendations.” Do you think governments should use the same accounting rules as business?
3) Where do pension obligations fit on a company’s statement of financial position? Check out page 62 in Wiley’s Financial Accounting: Tools for Business Decision-Making.