Below is the Pension Footnote from Goodyear Tire & Rubber Company for the year e
ID: 2497671 • Letter: B
Question
Below is the Pension Footnote from Goodyear Tire & Rubber Company for the year ended December 31, 2014 and 2013:
U.S.
Non-U.S.
2014
2013
2014
2013
Projected benefit obligation
$4,087
$4,101
$1,112
$2,106
Fair value of plan assets
$5,822
$2,869
$384
$1,375
What is a “Projected Benefit Obligation?”
What amount of asset or liability will Goodyear reflect on its balance sheet as of December 31, 2013? Show and label your computations.
What amount of asset or liability, if any, will Goodyear reflect on its balance sheet as of December 31, 2014? Show and label your computations.
What causes the Projected Benefit Obligation to change from year to year?
What causes plan assets to change from year to year?
U.S.
Non-U.S.
2014
2013
2014
2013
Projected benefit obligation
$4,087
$4,101
$1,112
$2,106
Fair value of plan assets
$5,822
$2,869
$384
$1,375
Explanation / Answer
Projected benefit obligation
Projected benefit obligation is a present value of moyee's pension. The present benefit obligation takes into account how long the employees' will work and any increased future obligation to the employee's pension.Projected benefit obligation is calculated by an actuary.Projected benefit obligation takes into account future increase in pension contribution that would take palce as the employee's salary increases.
Computation of Asset or liability to be shown for the year ended 31st december 2013
Computation of Asset or liability to be shown for the year ended 31st december 2014
Projected benefit obligation changes from year to year because of changes inthe salaries of the employees.
US Non US Total Projected benefit obligations 4101 2106 6207 Less: Plan Aseets 2869 1375 4244 Liability to be shown in the balance sheet 1963Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.