Question

Differentiate between “accounting for the employer” and “accounting for the pension fund.”

Short answer

Accounting is a term where the finance or the accounting department of an organization records the financial transactions using financial statements to identify its financial position and cash management.

Step-by-step solution

Introduction

The accounting for employer and pension funds differs in various cases. They both are related to the pension contribution made by the firm.

Difference between accounting for the employer and accounting for pension fund

Accounting for employer	Accounting for pension fund
It is a term used when an employer is responsible for the contribution and sponsorship of an employee's pension plan.	It is a term used when the organization receives the contribution from both employer and the employee towards a specific pension plan that will benefit the employee.
It involves allocating, measuring, and disclosing the plan’s financial information in its financial statements.	It involves the identification of the contribution plans that the employer has sponsored.