Which of the following financial statements is required for a Defined Contribution Pension Plan?

Answer options:

Statement of Net Assets Available for Benefits

Statement of Accumulated Plan Benefits

Statement of Comprehensive Income

Statement of Cash Flows

How to approach this question

Defined Contribution = Net Assets + Changes. Defined Benefit = Net Assets + Changes + Accumulated Benefits.

Full Answer

A.Statement of Net Assets Available for Benefits✓ Correct

Defined Contribution plans must present a Statement of Net Assets Available for Benefits and a Statement of Changes in Net Assets Available for Benefits. They do not report accumulated plan benefits because the benefit is not defined.

Common mistakes

Confusing DC and DB reporting requirements.

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