Defined benefit pension plans are an essential component of employee compensation packages, providing retirement benefits based on factors such as years of service and salary history. The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 715, "Compensation - Retirement Benefits," governs the accounting for defined benefit pension plans. This article will explore the key aspects of ASC 715 and provide examples of journal entries to illustrate the accounting process for defined benefit pension plans.
Research and development (R&D) is an essential aspect of innovation and growth for many businesses, as they invest in new technologies, products, and services. Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 730 provides guidelines for recognizing and accounting for R&D costs. This article will provide an in-depth understanding of ASC 730, its implications for R&D expenses, and examples of journal entries to illustrate the accounting process.
The ASC 925 Film standard provides guidance on the accounting and reporting for film production and distribution companies. One of the key aspects of financial reporting in the film industry is the capitalization of film production costs. In this article, we will explore how film production costs are capitalized under the ASC 925 Film standard and explain the associated journal entries.
The ASC 908 Airlines standard provides industry-specific guidance on the accounting and reporting for airline companies. One of the key aspects of financial reporting for airlines is the recognition of passenger revenue, which constitutes a significant portion of their income. In this article, we will explore how passenger revenue is recognized under the ASC 908 Airlines standard and explain the associated journal entries.
The Accounting Standards Codification (ASC) Topic 960, Plan Accounting, governs the financial reporting standards for employee benefit plans, including defined benefit pension plans. Specifically, ASC 960-20 focuses on the measurement of defined benefit pension plan obligations and the related actuarial assumptions. In this article, we will discuss the actuarial assumptions used in the valuation of a defined benefit pension plan's obligations, the importance of these assumptions, and the journal entries involved in the accounting process.