Page 283 - F1 Integrated Workbook STUDENT 2018

IAS 19 Employee benefits

Objectives

A pension plan (sometimes called a post-employment benefit scheme) consists of a
pool of assets and a liability for pensions owed to employees. Pension plan assets
normally consist of investments, cash and sometimes properties. The return used on
these assets is used to pay pensions.

There are two main types of pension plan:

 Defined contribution plans

 Defined benefit plans

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