How much is the component of the total defined benefit cost to be recognized in other comprehensive income? Information on Entity A's defined benefit plan is as follows:PV of DBO - Jan. 1, 20x11,800,0001,440,000FVPA - Jan.1, 20x1PV of DBO -Dec. 31, 20х1Dec. 31, 20х12,160,0001,572,000390,000120,000132,000FVPA, end.Current service costActuarial lossReturn on plan assetsDiscount rate5%

Information on Entity A's defined benefit plan is as follows: PV of DBO - Jan. 1, 20x1 FVPA - Jan.1, 20x1 PV of DBO - Dec. 31, 20x1 FVPA, end. - Dec. 31, 20x1 1,572,00o Current service cost Actuarial loss 1,800,000 1,440,000 2,160,000 390,000 120,000 132,000 Return on plan assets Discount rate 5%

Information on Entity A's defined benefit plan is as follows: PV of DBO - Jan. 1, 20x1 FVPA - Jan.1, 20x1 PV of DBO - Dec. 31, 20x1 FVPA, end. - Dec. 31, 20x1 1,572,00o Current service cost Actuarial loss 1,800,000 1,440,000 2,160,000 390,000 120,000 132,000 Return on plan assets Discount rate 5%

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You are the General Manager of Entity A. You have received the actuarial report for your company’s defined benefit plan. The report shows the following information: PV of DBO – Jan. 1, 20x1 1,500,000 FVPA – Jan. 1, 20x1 1,200,000 PV of DBO – Dec. 31, 20x1 1,800,000 FVPA, end. – Dec. 31, 20x1 1,310,000 Actuarial gain 100,000 Return on plan assets 110,000 Discount rate 5% When reporting on your company’s year-end highlights of financial summary, which of the following will you report to the Board of Directors (the ‘big bosses’)?
6. Net Benefit Expense for 20x6 7. Net Benefit Expense for 20x7 8. The Gain/(Loss) attributable to the FVPA for 20x8. 9. The Gain/(Loss) attributable to the Defined Benefit Obligation for 20x9. 10. The Debit/(Credit) to Other Comprehensive Income for 20x9.
If your school has a subscription to the FASB Codification, log in and prepare responses to the following. Provide Codification references for your responses. CE20.1 Access the glossary (“Master Glossary”) to answer the following. a. What is an accumulated benefit obligation? b. What is a defined benefit postretirement plan? c. What is the definition of “actuarial present value”? d. What is a prior service cost?
The retirement income payable from which of the following retirement income benefit programs is independent of the performance of any underlying investment portfolio? OA. RRSP OB. CPP OC. DCPP OD. TFSA COORD
E. Chariton Company provided the tollowing intormation concerning a detined benetit plan at the beginning of Surrent year prior to the adoption of revised PAS 19: Debit Credit Fair value of plan assets Unamortized past service cost Projected benefit obligation Unrecognized actuarial gain 4,750,000 1,250,000 5,500,000 850,000 The transactions for the current year relating to the defined benefit plan are as follows: Current service cost 925,000 Discount rate 6% Actual return on plan assets Contribution to the plan Benefits paid to retirees 485,000 1,350,000 995,000 Increase in projected benefit obligation due to changes in actuarial assumptions 150,000 Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined benefit plan. REQUIRED: 15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19. 16. Determine the employee benefit expense for the current year. 17. Compute the remeasurement related to the…
According to PAS 26, a hybrid plan is accounted for as a. defined benefit plan b. defined contribution plan c. a or b d. party a and partly b
E. Charlton Company provided the following information concerning a defined benefit plan at the beginning ofcurrent year prior to the adoption of revised PAS 19:Debit CreditFair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan. Compute the remeasurement related to the defined benefit plan.
1. All of the following are components of the defined benefit cost except * unvested past service cost interest on the effect of the asset ceiling loss on settlement return on plan assets 2. Which of the following are recognized in other comprehensive income? service cost net interest in net defined benefit liability (asset) amortization of actuarial gains or losses difference between interest income on plan assets and return on plan assets 3. The balance of the present value of defined benefit obligation is affected by all of the following except * actuarial gains or losses interest cost current service cost contributions to the fund 4. If the present value of the defined benefit obligation exceeds the fair value of the plan assets, there is * deficit surplus expense prepaid accrued benefit cost
Problem 26-3 (IAA) Rachel Company revealed the following information for the current year: Fair value of plan assets-January 1 Projected benefit obligation-January 1 Current service cost Past service cost Actual return on plan assets Contribution to the plan Benefits paid to retirees Discount rate 1. What amount should be reported as employee benefit expense? a. 2,000,000 2,200,000 c. 2,500,000 d. 1,750,000 2. What amount should be reported as fair value of plan assets on December 31? a. 7,000,000 b. 6,500,000 c. 6,200,000 d. 5,500,000 5,000,000 7,500,000 1,450,000 300,000 500,000 1,500,000 800,000 10% 3. What amount should be reported as projected benefit obligation on December 31? a. 9,250,000 b. 9,700,000 c. 8,950,000 d. 9,200,000 4. What amount should be reported as accrued benefit cost on December 31? a. 3,000,000 b. 2,500,000 c. 2,000,000 d. 1,500,000
E. Charlton Company provided the following information concerning a defined benefit plan at the beginning ofcurrent year prior to the adoption of revised PAS 19:Debit CreditFair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan.REQUIRED: 17. Compute the remeasurement related to the defined benefit plan.
E. Charlton Company provided the following information concerning a defined benefit plan at the beginning ofcurrent year prior to the adoption of revised PAS 19:Debit CreditFair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan.REQUIRED: 16. Determine the employee benefit expense for the current year.
E. Charlton Company provided the following information concerning a defined benefit plan at the beginning ofcurrent year prior to the adoption of revised PAS 19:Debit CreditFair value of plan assets 4,750,000Unamortized past service cost 1,250,000Projected benefit obligation 5,500,000Unrecognized actuarial gain 850,000The transactions for the current year relating to the defined benefit plan are as follows:Current service cost 925,000Discount rate 6%Actual return on plan assets 485,000Contribution to the plan 1,350,000Benefits paid to retirees 995,000Increase in projected benefit obligation due to changes in actuarial assumptions 150,000Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the definedbenefit plan.REQUIRED: 19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.