The payments made by the employer to fund a defined contribution pension plan create a pension fund asset on the balance sheet of the employer.

Question

Quizplus · Accepted Answer

Payments made by the employer to fund a defined contribution pension plan are recorded as expenses in the employer's income statement and do not create a pension fund asset on the employer's balance sheet. The pension fund assets are held in a separate legal entity for the benefit of the employees.

The Payments Made by the Employer to Fund a Defined