prior service cost

简明释义

以前服务成本

英英释义

例句

1.The calculation of prior service cost 以前服务成本 requires careful consideration of the changes in the pension plan.

计算以前服务成本需要仔细考虑养老金计划的变更。

2.During the audit, the accountant noted the prior service cost 以前服务成本 related to the new benefits offered to employees.

在审计过程中，会计注意到与新提供给员工的福利相关的以前服务成本。

3.The prior service cost 以前服务成本 was amortized over several years as part of the company's pension obligations.

作为公司养老金义务的一部分，以前服务成本被分摊到几年内。

4.Management decided to disclose the prior service cost 以前服务成本 in the notes to the financial statements for transparency.

管理层决定在财务报表附注中披露以前服务成本以增加透明度。

5.The company recognized a significant prior service cost 以前服务成本 in its financial statements after changing its pension plan.

公司在更改养老金计划后，在财务报表中确认了一项重大以前服务成本。

作文

In the realm of accounting and finance, understanding various terminologies is crucial for effective communication and decision-making. One such term that often arises in discussions about pension plans and employee benefits is prior service cost. This concept refers to the cost associated with benefits that are earned by employees for their service prior to the implementation of a new pension plan or any changes made to an existing one. It is essential for both employers and employees to grasp the implications of prior service cost as it directly affects the financial statements and the overall financial health of an organization.When a company decides to adopt a new pension plan or amend an existing plan, it may grant credit for the service performed by employees before the plan's inception or modification. This is where prior service cost comes into play. Essentially, it represents the increase in the projected benefit obligation (PBO) due to this retroactive recognition of service. For instance, if a business introduces a pension plan that covers employees' past service, the costs associated with that decision will be recognized as prior service cost in the financial statements.Understanding prior service cost is vital for several reasons. Firstly, it impacts the balance sheet by increasing the liabilities of the company, which can affect key financial ratios such as the debt-to-equity ratio. Investors and stakeholders closely monitor these ratios to assess the financial stability of a business. A significant increase in liabilities due to prior service cost might raise concerns about the company's ability to meet its long-term obligations.Secondly, prior service cost also influences the income statement. When the cost is recognized, it may lead to increased expenses in the period in which the pension plan is adopted or modified. This could reduce the net income reported by the company, impacting earnings per share and potentially affecting stock prices. Therefore, it is crucial for management to communicate effectively with investors about the implications of prior service cost to mitigate any negative perceptions.Moreover, from a planning perspective, understanding prior service cost is essential for budgeting and forecasting. Companies need to factor in these costs when developing their financial strategies and setting aside funds for future pension obligations. Failing to account for prior service cost can lead to underfunded pension plans, which may result in legal liabilities and financial penalties.In conclusion, the term prior service cost embodies a significant aspect of pension accounting that requires careful consideration from both financial professionals and organizational leaders. As companies navigate the complexities of employee benefits and pension plans, recognizing the impact of prior service cost on financial statements and overall business strategy is paramount. By fostering a deeper understanding of this concept, organizations can make informed decisions that ensure their long-term financial health and commitment to employee welfare.

在会计和金融领域，理解各种术语对于有效沟通和决策至关重要。其中一个经常出现在养老金计划和员工福利讨论中的术语是prior service cost。这个概念指的是与员工在新养老金计划实施或对现有计划进行任何更改之前所获得的福利相关的成本。雇主和员工都必须掌握prior service cost的含义，因为它直接影响财务报表和组织的整体财务健康。当公司决定采用新的养老金计划或修订现有计划时，可能会为员工在计划开始或修改之前的服务授予信用。这就是prior service cost的作用所在。它本质上代表了由于这种追溯性服务认可而导致的预计福利义务（PBO）的增加。例如，如果一家公司推出了一项涵盖员工过去服务的养老金计划，与该决定相关的成本将在财务报表中被确认为prior service cost。理解prior service cost至关重要，原因有很多。首先，它会影响公司的资产负债表，增加公司的负债，这可能会影响关键财务比率，如债务与股本比率。投资者和利益相关者密切关注这些比率，以评估企业的财务稳定性。由于prior service cost导致的负债大幅增加可能会引发对公司履行长期义务能力的担忧。其次，prior service cost也会影响损益表。当成本被确认时，可能会导致在养老金计划采用或修改的期间内费用增加。这可能会减少公司报告的净收入，影响每股收益，并可能影响股价。因此，管理层必须有效地与投资者沟通prior service cost的影响，以减轻任何负面看法。此外，从规划的角度来看，理解prior service cost对于预算和预测至关重要。公司在制定财务战略和为未来养老金义务预留资金时，需要将这些成本纳入考虑。如果未能考虑prior service cost，可能会导致养老金计划资金不足，进而导致法律责任和财务处罚。总之，术语prior service cost体现了养老金会计的一个重要方面，需要财务专业人士和组织领导者的仔细考虑。随着公司在员工福利和养老金计划的复杂性中航行，认识到prior service cost对财务报表和整体商业战略的影响至关重要。通过加深对这一概念的理解，组织可以做出明智的决策，确保其长期财务健康和对员工福利的承诺。