Accounting for a defined benefit pension plan is simpler than accounting for a defined contribution plan.

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Accounting for a defined benefit pension plan is more complex compared to accounting for a defined contribution plan because it involves estimating the future benefit payments and calculating the present value of the liabilities associated with the plan, considering factors such as mortality, employee turnover, salary increases, and investment returns. On the other hand, accounting for a defined contribution plan simply involves recording contributions made by the employer and employee and any investment gains or losses.

Accounting for a Defined Benefit Pension Plan Is Simpler Than