In Its 2018 Annual Report to Shareholders, JDS Corporation Disclosed

question 211

Essay

In its 2018 annual report to shareholders, JDS Corporation disclosed the following information about its pension plan:
$$\begin{array} { | l | r | r | } \hline \text { (\$ in millions) } & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\hline \text { PROJECTED BENEFIT } & & \\\text { OBLIGATION } & & \\\hline \text { Beginning balance } & \$ 120.0 & \$ 102.2 \\\hline \text { Service cost } & 4.1 & 5.5 \\\hline \text { Interest cost } & 7.0 & 6.5 \\\hline \text { Benefits paid } & ( 2.6 ) & ( 4.4 ) \\\hline \text { Actuarial loss } & \underline { 6.6 } & \underline { 11.4 } \\\hline \text { Ending balance } & \$ 135.1 & \$ 121.2 \\\hline\end{array}$$
The increase in the underfunded projected benefit obligation was primarily attributable to a reduction in the assumed discount rate. This was combined with the effect of increases in benefits under the terms of the plan in excess of current inflation rates. The net result was reflected as a reduction in accumulated other comprehensive income.
-Explain how the loss is reported in the financial statements (other than the balance sheet).

Identify strategies to develop different cognitive abilities related to decision making.

Understand the process and importance of creativity in decision making.

Understand different decision-making models and their application in various scenarios.

Recognize the role of biases and heuristics in the decision-making process.

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Definitions:

Selective Incorporation

A constitutional doctrine that ensures states cannot enact laws that infringe on the rights of citizens that are protected under the Bill of Rights.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, granting citizenship to all persons born or naturalized in the United States, including former slaves, and guaranteeing all citizens equal protection of the laws.

Bill of Rights

The first ten amendments to the U.S. Constitution, guaranteeing fundamental civil rights and liberties.

Alexander Hamilton

A Founding Father of the United States, the first Secretary of the Treasury, and a key figure in the drafting of the Constitution and the establishment of the national financial system.