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:

Commercial Unit

Under the UCC, any unit of goods that is treated by commercial usage as a single whole. It may, for example, be a single article or a set of articles such as a dozen, bale, gross, or carload.

Accepted only

A condition or specification that only the accepted or approved items, proposals, or bids are considered, excluding all others.

Anticipatory Repudiation

The declaration by a party involved in a contract that they do not intend to fulfill their future obligations as agreed, even before the time to perform has arrived.

UCC

The Uniform Commercial Code details a complete collection of regulations that oversee every commercial transaction across the United States.