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CONFUSING PHRASE ON IAS 19

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › CONFUSING PHRASE ON IAS 19

  • This topic has 3 replies, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 27, 2014 at 1:20 pm #192521
    Gabriel
    Member
    • Topics: 135
    • Replies: 586
    • ☆☆☆☆

    I don’t understand this phrase “. Defined benefit plans may be unfunded, or they may be wholly or partly funded.”

    How can they be unfunded? If the company doesn’t have any obligation to put funds in the asset (unfunded) then how can it be a defined benefit plan as the risk and rewards then don’t stay with the company. So what’s unfunded and partly funded?

    August 27, 2014 at 3:37 pm #192537
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    Here’s a link to follow!

    https://www.investopedia.com/terms/f/fully-funded.asp

    August 27, 2014 at 5:28 pm #192550
    Gabriel
    Member
    • Topics: 135
    • Replies: 586
    • ☆☆☆☆

    Fine got the definition of fully funded but what’s unfunded then?

    August 27, 2014 at 6:03 pm #192556
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23359
    • ☆☆☆☆☆

    Here you go!

    https://www.investopedia.com/terms/u/unfunded-pension-plan.asp

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