A Defined Contribution Scheme

question 17

Multiple Choice

A defined contribution scheme:

• A) Moves any actuarial and investment risk from the employer to the employee.
• B) Requires the contribution made by an employer to be recognised as an expense.
• C) Will only create a liability for the employer to the extent that any agreed contribution remains unpaid at the end of the financial year.
• D) Requires employers to measure their obligations on an undiscounted basis, unless they are not wholly due within the 12 months after the period in which the employee rendered their services.
• E) All of the given answers.

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Definitions:

Employee's Performance

An assessment of how effectively and efficiently an employee completes their assigned tasks and contributes to the objectives of the organization.

Natural Teams

Groups of individuals who form a working team based on inherent or organic relationships and common goals, rather than being artificially assembled.

Formally Recognized Unit

A defined group or department within an organization that has been officially acknowledged and given a specific purpose or function.

Section

A distinct part within a document, organization, or system, usually separated by topic or function.