Category:CAS 412 - Pension Costs

From Knowledge base

Purpose

The purpose of this Standard 9904.412 is to provide guidance for determining and measuring the components of pension cost. The Standard establishes the basis on which pension costs shall be assigned to cost accounting periods. The provisions of this Cost Accounting Standard should enhance uniformity and consistency in accounting for pension costs and thereby increase the probability that those costs are properly allocated to costs objectives.

This Standard does not cover the cost of Employee Stock Ownership Plans (ESOPs) that meet the definition of a pension plan. Such plans are considered a form of deferred compensation and are covered under 9904.415.

There are generally two types of Pension Plans: They are:

Within this category of Pension Plans, they are either qualified or non-qualified. To determine whether your plan is qualifed or non-qualifed, please see the definiton of a Qualified Pension Plan.