NPPC

(redirected from Net Periodic Pension Cost)
AcronymDefinition
NPPCNational Pork Producers Council
NPPCNestle Purina PetCare Company (St. Louis, MO)
NPPCNorthwest Power Planning Council (Olympia, Washington)
NPPCNippon Pillar Packing Co., Ltd. (Japan)
NPPCNational Pollution Prevention Center
NPPCNet Periodic Pension Cost (finance)
NPPCNational Postal Policy Council
NPPCNational Pain Patients Coalition
NPPCNuclear Power Plant Consultant
NPPCNumeric Parts Preference Code
NPPCNavy Programming Planning Council
NPPCNederlands Planning en Presentatie Collectief
NPPCNational Passport Processing Center (US)
NPPCNon-Plasma Particle Cleaning
References in periodicals archive ?
Separately, we adopted Accounting Standards Update ("ASU") 2017-07, "Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost", which reclassifies net periodic pension costs, other than historical service costs, from compensation and benefits to investment and other income (loss).
The Financial Accounting Standards Board (FASB) has issued an exposure draft on "Compensation-Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments in the proposed update to FASB accounting standards would require a defined benefit (DB) plan sponsor to report the service cost component of pension expenses in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period.
The actual return on plan assets, reported in the footnotes of the annual report, is not used in the calculation of net periodic pension cost and, thus, does not immediately impact measures of firm profitability, such as net income.
One important accounting aspect of defined-benefit plans is the recognition of gains and losses as a component of net periodic pension cost. Gains and losses include changes in the value of plan assets and in the amount of projected benefit obligations (PBO).
in net periodic pension cost Other comprehensive income, before tax 22,666 Income tax expense related to other -5,666 comprehensive income Other comprehensive income, net of tax 17,000 Comprehensive income 80,600 Less: Comprehensive income attributable to -16,120 noncontrolling interest Comprehensive income attributable to XYZ Company $64,480 ASU 2011-05 allows for other comprehensive income to be shown net of tax (see Table 1) or as shown here with a collective income tax expense for all of the comprehensive income items.
Funding Status of Defined Benefit December 31, 2006 Pension Plan (in thousands) Projected benefit obligation $ 6,855 Plan assets at fair market value 6,790 Funding Status $ (65) Items not yet recognized as components of net periodic pension cost (expense) Prior service cost $ 39 Unrecognized net loss 26 Funding Status of Retiree December 31, 2006 Health Care Plan (in thousands) Accumulated benefit obligation $ 1,010 Plan assets at fair market value 852 Funding Status $ (158) Items not yet recognized as components of net periodic health care cost (expense) Transition Obligation $ 40 Prior service cost 100 Unrecognized net loss 18 The Company utilized the following rate assumption in accounting for its defined benefit retirement plans:
Annual pension cost-the periodic cost charged against earnings, referred to as the "net periodic pension cost"-is determined under a uniform method prescribed by FAS 87.
SFAS 87 increased the comparability and understandability of pension accounting by requiring a standardized method for measuring net periodic pension cost and an immediate recognition of a liability when the accumulated benefit obligation exceeds the fair value of plan assets.
Accounting Concepts for Defined-Benefit Pension Plans Accounting concept Definition Service cost Present value of benefits earned in the current year + Interest cost Coat of financing the outstanding benefit obligation + Other costs Includes costs of plan amendments and changes in actuarial assumptions - Expected return on plan assets Assumed return on market-related value = Net periodic pension cost (NPPC) (a) - Service cost As defined above = Pension earnings Source: Financial Accounting Standards Board (1985).
A material plan amendment such as a conversion to a cash balance formula generally requires remeasurement to update actuarial assumptions used in calculating the net periodic pension cost. In addition, the converting company uses updated assumptions to reflect changes in market interest rates and assumptions about employee turnover and salary and benefit increases.
Net periodic pension cost was composed of the following in 1999 and 1998:
To determine whether an additional minimum liability must be recognized, the amount determined at December 31, 1988, is compared to any prepaid or accrued pension amount recorded on that December 31 balance sheet as a result of differences between net periodic pension cost recorded under Statement 87 and contributions to the plan.