Research On Enterprise Supplementary Pension Accounting

Supplementary pension is the second pillar and important part of the social security system, which is established by enterprise and its employees voluntarily based on their basic pension. In China, supplementary pension has been established since 1991, and encouraged for more than ten years. At present, we have achieved some success both in theory and in practice. In 2004, series of law and regulations was issued one after another, which converted the situation that there was no law about supplementary pension. After the system foundation, the supplementary pension has been speeding up. With the rapid development of our country's supplementary pension, how to standardize accounting behavior has been a new subject in accounting field.A set of relatively complete accounting system has been established since the research about supplementary pension accounting starts early in the west. However, the situation is just on the contrary in China. Although The Enterprise Supplementary Pension Fund Standard which has been issued recently indicates that our country has begun to pay more attention to the supplementary pension gradually, it only standardizes the investment of enterprise supplementary pension fund. The Employees Benefit Standard requests that the contribution of supplementary pension is conducts according to Defined Contribution Plan (DC). This method of accounting is relatively easy. With the development of enterprise pension, the government will allow the supplementary pension plan freely, because the only DC plan couldn't meet the employees'various need. Finally, the pension plan will access to Defined Benefit Plan (DB). The contribution of DB is different between supplementary pension accounting and other employee benefits accounting in China. In future, with the development of enterprise pension system, we should focus to standardize the accounting of contribution stage in DB.In this paper, the author learns from the pension accounting standards of the developed countries, considers our practical situation, and does forward research about enterprise supplemental pension accounting, especially in DB plan. Moreover, the author advises how to standardize the enterprise supplemental pension accounting. The enterprise supplemental pension accounting system is established, which will promote the supplemental pension accounting to internationalize theoretically and practically.There are four chapters in this paper. The chapter one states the background and meaning of the topic and a review of related literature. The chapter two analyses how to choose DB plan and DC plan in China. The chapter three discusses main controversial problems related to DB plan, on which the author expressed her own opinions based on our practical situation from confirming, measuring, noting and disclosing. The chapter four summarizes the whole paper, draws the conclusions, and gives the suggestion.The paper is written in normative method, researches enterprise supplemental pension accounting as subject. There are two innovative aspects in this paper:1. The author states the"comprehensive income"concept in enterprise supplemental pension accounting in DB plan.2. The author discusses main controversial problems related to DB plan, on which the author expressed her own opinions based on our practical situation.