The plan will pay out medical costs of the participants with its assets. Some of the more important areas of accounting for these include tracking the net assets of the plan available for the beneficiaries, the investments which the plan has, and the liabilities the plan has to its beneficiaries for things such as medical care.
Two Types of Health and Welfare Plans
- Defined Benefit H&W Plans
- Defined Contribution H&W Plans
Additional Disclosure under ASC 965-205-50
- Weighted average assumed discount rate used to measure the post employment benefits
- Investments which represent 5% or greater of the plan net assets available for benefits
- How much of the plan’s estimated benefit costs are to be funded by the contributions of retirees
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