Analyzing and Interpreting Pension Disclosures
Potash Corporation of Saskatchewan, the world's largest potash producer, is a Canadian corporation based in Saskatoon, Saskatchewan. The company produces nitrogen and phosphate used to produce fertilizer. At the end of 20 1 I, the company controlled 20% of the world's potash production capacity, 2% of nitrogen production capacity and 5% of phosphate supply.
a. How much pension expense does Potash Corporation report in its 2012 income statement?
b. The company reports a $57 million expected return on pension plan assets as an offset to 2012 pension expense. In general terms, how is this amount computed? What is the purpose of using this expected return instead of the acrualgain or loss?
c. What factors affected the company's pension liability during 2012? What factors affected the pension plan assets during 2012?
d. What does the term funded staLUs mean? What is the funded starus of the 2012 pension plans and postretirement benefit plans?
e. The company decreased its discount rate on the pension obligation from 4.60% to 3.85% in 2012. What effect(s) does this decrease have on the company's balance sheet and income statement?
f How did Potash Corporation 's pension plan affect the company's cash flow in 2012?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more