In response to the recent FASB standard SFAS 158, Employers' Accounting for Defined Benefit Pension and Other Post-Retirement Plans, the Spiceland author team has completely updated chapter 17 to reflect these changes. The revised chapter is included here in PDF form; you can also access the chapter and its supplemental material here:

Chapter 17 PDF (FINAL 1.24.2007) (727.0K)

http://highered.mcgraw-hill.com/sites/0072994029/student_view0/text_updates_and_errata.html

Instructors can access all updated content by logging in to the Instructor Edition and clicking on either the Text Updates/Errata link, or on any of supplements in the "Chapter 17" section. All older files for chapter 17 have been replaced with the updated content.

Explain the fundamental differences between a defined contribution pension plan and a defined benefit pension plan.

Distinguish among the vested benefit obligation, the accumulated benefit obligation, and the projected benefit obligation.

Describe the five events that might change the balance of the PBO.

Explain how plan assets accumulate to provide retiree benefits and understand the role of the trustee in administering the fund.

Describe the funded status of pension plans and how that amount is reported.

Describe how pension expense is a composite of periodic changes that occur in both the pension obligation and the plan assets.

Record for pension plans the periodic expense and funding as well as new gains and losses and new prior service cost as they occur.

Understand the interrelationships among the elements that constitute a defined benefit pension plan.

Describe the nature of postretirement benefit plans other than pensions and identify the similarities and differences in accounting for those plans and pensions.

Explain how the obligation for postretirement benefits is measured and how the obligation changes.

Determine the components of postretirement benefit expense.