Reference no: EM132297629

Question: Accounting for Pension Plans

1. Defend the current GAAP rules for pension accounting reporting on the balance sheet and the income statement. Recommend a change you would make to the current pension accounting to more accurately reflect the future obligations of a company.

2. Case C19-8: OPRB Issues: Evaluate the content of the advertisement and explain why companies may have reduced benefits when they adopted new GAAP.

Consolidated Financial Statements - Intra-Entity Asset Transactions"

3. The consolidation process required for the intra-entity transfer of depreciable assets is different from the requirements for inventory and land. Analyze the current consolidation process for intra-entity transfer of depreciable assets and suggest at least one (1) improvement to the process. Provide an example to support your recommendation.

4. Assume that company P (parent) uses the equity method to account for its investment in company S (subsidiary). Company P purchases inventory items from company S. According to FASB's guidance, the accountant must remove the inter-company profit from Company S's net income. Evaluate the consolidation process for inventory transfers between the parent and subsidiary and describe the process for eliminating profit from the non-controlling interest. Determine if the process permanently eliminates the profit from the non-controlling interest or merely shifts the profit from one period to the next. Provide support for your rationale.