Enterprise Annuity Accounting Research

With the aging of world population, public pension crisis occurs in most countries. Pension systems throughout the world have been undergoing changes and reforms. Occupational pension system which is a crucial complement to public pension becomes an important part of multi-pillar pension scheme. It is one of security systems of retirement incomes provided by enterprises voluntarily and provides important living safeguard for the aged by increasing their retirement income as a part of enterprise wage and welfare system. In order to reflect the influence of occupational pensions on the financial position, operating results and cash flows of enterprises, help financial report users to learn the accounting information, evaluate the manager's stewardship responsibility and make financial decisions, accounting theory and practice researchers all over the world have paid much attention to accounting for occupational pension.The IASC has issued IAS No.19, "Retirement Benefit". The FASB has issued SFAS No.87 "Employers' Accounting for Pensions", SFAS No.88 "Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits", SFAS No.132 "Employers' Disclosures about Pensions and Other Postretirement Benefits" and SFAS No.l58"Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans". The ASB has issued FRS No.17 "Retirement Benefit". Although those accomplishments have been achieved, accounting for occupational pension plans continues to be a controversial issue and complete consensus has not been achieved.In China, occupational pension is developing rapidly in recent years. However, occupational pension accounting is new to our country. How to use international standards for reference and set up our own pension accounting system to adapt to our current position is worth much research and discussion. This thesis consists of seven chapters:Chapter One "Introduction", this chapter puts forward the research subject, research approach and innovation of this thesis, and chiefly presents the framework and contents.Chapter Two "General Analysis of Occupational Pension Accounting", this chapter begins with the analysis of occupational pension system which has influence on accounting, and then sets forth the theoretical basis of occupational pension accounting, including its accounting objective, entity and elements, and lastly analyzes the nature of accounting for defined benefit pension plans.Chapter Three "Recognition of Occupational Pension", first of all, this chapter discusses the general theory of accounting recognition, including recognition criteria and basis, and then expounds the recognition of defined contribution plan and defined benefit plan separately, especially discussing the recognition basis, components of net periodic pension cost and the recognition of plan assets and obligation in defined benefit plan.Chapter Four "Measurement of Occupational Pension", this chapter firstly discusses the measurement objective, attributions and its future, and then expounds the recognition of defined contribution plan and defined benefit plan separately, especially analyzing the actuarial methods which are used to calculate pension cost and obligation, measurement attributions of obligations, choosing of discount rate and the measurement of plan assets in defined benefit plan.Chapter Five "Disclosure of Occupational Pension", on the basis of discussion of the meaning and validity of disclosure, this chapter describes the disclosure of defined contribution plan and defined benefit plan separately, especially focusing on the disclosure contents of defined benefit plan, and then analyzes the annotations disclosure of 2006 annual report of GE.Chapter Six "International Comparison of Occupational Pension Accounting", comprehensively, systematically and deeply, this chapter compares the emergence and development, accounting and reports of international pension accounting standards.Chapter Seven "Occupational Pension Accounting Standard in the Economic Transition Period of China", firstly this chapter discusses the history, status quo and future of occupational pension system in China, and then using international experience for reference, imagines the contents of occupational pension accounting standard in China, including the nature of occupational pension, recognition, measurement and disclosure of defined contribution plan and defined benefit plan.