Discussion:
QUESTIONS
1. Differentiate between a defined contribution pension plan and a defined benefit pension plan.
2. Explain how the employer's obligation differs between the two types of plans.
3. Explain how cash-basis accounting for pension plans differs from accrual-basis accounting for pension plans
4. Why is cash-basis accounting generally considered unacceptable for pension plan accounting?
5. What is the purpose of a cash flow hedge?
6. What are some examples of cash flow hedge?
7. What are the main distinctions between a traditional financial instrument and a derivative financial instrument?
8. What is "ShlomoBenartzi: Saving for Tomorrow, Tomorrow"?
ANSWER EACH QUESTION IN 200 OR MORE WORDS