Accounting for defined contribution plans is more complex than accounting for defined benefit plans.

Question

Quizplus · Accepted Answer

Accounting for defined benefit plans is more complex because it involves estimating future liabilities and investment returns, and requires actuarial calculations to determine the contributions needed to meet those liabilities. Accounting for defined contribution plans involves recording contributions made by both the employer and employees, and any investment gains or losses are reflected in the individual accounts of the plan participants.

Accounting for Defined Contribution Plans Is More Complex Than Accounting