Deferred Compensation and Life Insurance: Recovery and Liability Analysis

Deferred Compensation and Life Insurance: Recovery and Liability Analysis


Background to the Lawsuit

The Riley Company has decided to convince Janet Anderson to remain with the company, even if she leaves the company or dies, by paying 15 per year to her or her estate for the next 10 years. promised to pay $10,000. The Riley Company would like to properly account for this transaction as deferred compensation, but is unsure how to account for the expense. In addition, the Riley Company took out a life insurance policy for Janet and named the company as her beneficiary. The Riley Company wants to determine whether surrender value of life insurance policies can be set off against deferred liability.

In at least 5-7 sentences, summarize the background to the lawsuit and state your assumptions about it. making a case. Define problems and research questions. Include APA references and citations.

Answer to Question 1

Deferred indemnification liabilities may be valued at their present value by individuals. The company can be recorded as the beneficiary since the expected profit is due to late payment dates. An entity cannot recognize it as a beneficiary if its terms do not provide for recognition of the entity as a beneficiary (Smucker 2019). Furthermore, according to IAS 19, costs and services must be recognized immediately after the profit or loss is incurred.

Furthermore, it is possible for the company to purchase the surrender value after the cancellation of the insurance. Note, however, that the term insurance should not have surrender value. If the policy is not canceled by this time, the policyholder is obliged to pay income tax if the surrender value exceeds the premiums paid. If businesses do not have access to insurance but still need it, they can choose to access cash-in on policies (Glaum, Keller & Street 2018). We cannot receive cash surrender value from life insurance policies involving savings or investments. A pure recurring plan does not achieve cash redemption value. However, surrender value can be achieved if the company has a legacy plan. In either case, business-related surrender value cannot be offset as it will gradually increase over time due to insurance coverage.

Calculate the price of your order

Select your paper details and see how much our professional writing services will cost.

We`ll send you the first draft for approval by at
Price: $36
  • Freebies
  • Format
  • Formatting (MLA, APA, Chicago, custom, etc.)
  • Title page & bibliography
  • 24/7 customer support
  • Amendments to your paper when they are needed
  • Chat with your writer
  • 275 word/double-spaced page
  • 12 point Arial/Times New Roman
  • Double, single, and custom spacing
  • We care about originality

    Our custom human-written papers from top essay writers are always free from plagiarism.

  • We protect your privacy

    Your data and payment info stay secured every time you get our help from an essay writer.

  • You control your money

    Your money is safe with us. If your plans change, you can get it sent back to your card.

How it works

  1. 1
    You give us the details
    Complete a brief order form to tell us what kind of paper you need.
  2. 2
    We find you a top writer
    One of the best experts in your discipline starts working on your essay.
  3. 3
    You get the paper done
    Enjoy writing that meets your demands and high academic standards!

Samples from our advanced writers

Check out some essay pieces from our best essay writers before your place an order. They will help you better understand what our service can do for you.

Get your own paper from top experts

Order now

Perks of our essay writing service

We offer more than just hand-crafted papers customized for you. Here are more of our greatest perks.

  • Swift delivery
    Our writing service can deliver your short and urgent papers in just 4 hours!
  • Professional touch
    We find you a pro writer who knows all the ins and outs of your subject.
  • Easy order placing/tracking
    Create a new order and check on its progress at any time in your dashboard.
  • Help with any kind of paper
    Need a PhD thesis, research project, or a two-page essay? For you, we can do it all.
  • Experts in 80+ subjects
    Our pro writers can help you with anything, from nursing to business studies.
  • Calculations and code
    We also do math, write code, and solve problems in 30+ STEM disciplines.

Frequently asked questions

Get instant answers to the questions that students ask most often.

See full FAQ
    See full FAQ

    Take your studies to the next level with our experienced specialists

    Hello, we are online 24/7. Leave a message we will reply instantly