The Early Historical Accounting For Pensions And Post Retirement Accounting Essay

In 1928, a national health insurance scheme was proposed but not implemented because it would have required businesses to provide contributions to health insurance for their employees (Evolution of Government Involvement in Health Care, n.d). Another national health insurance scheme was proposed in 1938 but it was also rejected (Evolution of Government Involvement in Health Care, n.d; Hilless & Healy, 2001). The next proposal was the 1945 Pharmaceuticals Benefits Act. This Act was not implemented because the Australian Medical Association challenged it in the High Court of Australia and it was decided that parliament had “exceeded its constitutional power” (Hilless & Healy, 2001). In 1946, under the Hospital Benefits Act, the Commonwealth began to subsidise public hospitals under the condition that patients would not be charged (Evolution of Government Involvement in Health Care, n.d; Hilless & Healy, 2001). This act is similar to the current Medicare system.

Prior to this shift, government involvement in health insurance services was minimal since it seemed to be under control by the non-profit sector. There didn’t seem to be an urgent need to control or universalize health care at the time. The government’s first interest in the health care industry sparked when employers began providing health care benefits as a competitive advantage for recruiting workers back into the workforce during World War II. To help cope with the rising unemployment rates, the government would offer tax incentives to employers providing these benefits. (add Quote)

9. How did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits?

In 1943, Senator Murray, Edward Wagner and Congress man Dingell introduced the United States National Health Insurance bill, the acting president at the time, Roosevelt, did not endorse the bill but was supportive(5). The National Health Insurance wasn’t a new concept. In 1883, Otto von Bismark introduced an obligatory health insurance program(6). Its’ success expanded the concept of social insurance in Europe and America. Without official endorsement by the president and with the war still going on, the Wagner-Murray-Dingell bill died in committee.

The Great Depression in the 1930’s had been followed by a period of growing income inequality and a shrinking middle class. Due to the economic conditions, Income disparities in access to health care had grown much worse, medical costs were rising, and sickness became a leading cause of poverty. Since few people could afford to pay for medical care welfare agencies began to help pay for medical costs for the poor. By “1940, the population of the united states was 132 million with only 12 million – a little less than 10 percent covered by some form of health insurance”( Scofea, 1994). The growing concern of the increase in the number of people who are uninsured led to the enactment of the Stabilization act in 1942, which imposed wage and price controls but at the same time permitted the adoption of employee insurance plans. The federal government enacted this legislation to prevent employers from raising wages in order to compete for scarce labor in response to the inflation pressure of the wartime economy. Furthermore, the government provided private insurers with a new market for their products by permitting employers to offer health insurance to their employees. In the years that followed, the government passed several regulations that helped reinforced the institutionalization of the employment-based system of health insurance that

Based on your research, compare and contrast the early historical accounting for Postretirement Health Care and Life Insurance Benefits

It has been recognized that ever since its passage into law the Affordable Care Act frequently known as Obamacare has and will continue to attract criticism and scrutiny. This is the America`s major and mainly well-liked social indemnity programs. Despite the fact the Affordable Care Act is a highly multifaceted piece of legislation featuring many regulatory and intergovernmental provisions meant to deal with lack of health insurance coverage affecting a variety of diverse groups, Medicare and social security are much more focused programs providing benefits primarily to the aged. Social security and Medicare were in the beginning implemented more without difficulty and with a little of bipartisan support, because in 1935 and 1965 democrats

The creation of a national health insurance program has been a political conversation since the Early 1940s. In 1940, approximately nine of ten Americans lacked health

increase when the company or the employees make additional cash contributions. Pension benefits are paid out when employees retire and this reduces the plan‟s assets. d. Pension expense is determined using the expected return on plan assets (not the actual return). The expected return on the assets reduces the expense. The pension plan assets are measured on the balance sheet each period at

The main historical developments that have shaped the health care delivery system in the United States. Knowledge of the history of health care is essential for understanding the main characteristics of the system as it exists today. For example, the system’s historical foundations explain why health care delivery in the United States has been resistant to national health insurance, which has been adopted by Canada and most European nations. Traditionally held American cultural beliefs and values, technological advances, social changes, economic constraints, and political

MC Wells ‘A Revolution in Accounting Thought’. The Accounting Review. V.LI. No.3. July 1976. pp471-82. The article does not have an abstract – write an abstract of no more than 400 words. A short guide to writing an abstract is provided. ----Answered by Wenxin

This paper will be based research, compare and contrast the early historical accounting for Postretirement Health Care and Life Insurance Benefits with the guidance / rules in place today with the Financial Accounting Standards Board (FASB) recently issued Statement of Financial Accounting Standards No. 158 "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans; changes to the guidance and rules that would improve the financial accounting and reporting of the benefits. Predict the significant manner in which the future of accounting for these benefits could

Accordingly, the $39.3 million actuarial gain which resulted from the restructuring is included in Accrued Pension Costs in the accompanying Balance Sheet and is being amortized to income over a ten-year period commencing in 1984. The effect of the changes in the investment return assumption rates for all U.S. plans, together with the 1984 restructuring of the U.S. Salaried Employees' Plan, was to reduce pension expense by approximately $4.0 million in 1984 and $2.0 million in 1983, and the actuarial present value of accumulated plan benefits by approximately $60.0 million in 1984. Pension expense in 1983 was also reduced $2.1 million from the lower level of active employees. Other actuarial gains, including higher than anticipated investment results, more than offset the additional pension costs resulting from plan changes and interest charges on balance sheet accruals in 1984 and 1983.

There are a number of differences between GAAP and IFRS in the area of accounting for pensions and other post-retirement and postemployment benefits (Deloitte, 2004). Some differences will result in less earnings volatility, while others will result in more. Under IFRS, a company can adopt a policy that would allow recognition of gains/losses in other comprehensive income. Gains/losses treated in accordance with this election would not be subsequently recycled through the income statement. This election generally reduces the volatility of pension expense recorded within the company’s income statement because gains/losses would be recorded only within other comprehensive income. Other policy elections available under IFRS for gain/loss recognition are similar to those under GAAP. Under IFRS, companies are not required to present the full-funded status of the postemployment benefit plans on the balance sheet. However, companies are required to disclose the full-funded status within the notes to the financial statements. GAAP permits the use of a calculated asset value to spread market movements over periods up to five years in the determination of expected returns of plan assets. IFRS prohibits the use of calculated value and required that the actual fair value of plan assets at each measurement date be used. Differences between GAAP and

After four decades of failure to enact a universal healthcare program, advocates decided to refine their approach in the 1950s, and the strategy that ultimately led to the passage of Medicare and Medicaid was formulated. Wilbur Cohen and I.S. Falk recognized that a health insurance plan focused on Social Security beneficiaries would be much easier to sell than a plan for all Americans. By limiting its benefits to the elderly, Medicare could be portrayed as a program for people who met two important criteria: they had greater need for healthcare coverage and they were especially deserving of public assistance. Because of their age, seniors have relatively high medical costs--when Medicare was passed, average healthcare expenses for people sixty-five or older were twice the average expenses for younger persons. (Orentlicher, D. (2012).