At the beginning of the current year, the memorandum records of A Company’s defined benefit plan showed the following: Fair value of plan assets P 7,500,000 Defined benefit obligation (11,000,000) Prepaid(accrued) defined benefit exp. (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan P1,200,000 Benefits paid to retirees 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000 The fair value of plan assets at the end of the current year is A P7,800,000 B P8,250,000 C P8,700,000 D P7,950,000
At the beginning of the current year, the memorandum records of A Company’s defined benefit plan showed the following:
|
Fair value of plan assets |
P 7,500,000 |
|
Defined benefit obligation |
(11,000,000) |
|
Prepaid(accrued) defined benefit exp. |
(P3,500,000) |
The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year:
|
Contribution to the plan |
P1,200,000 |
|
Benefits paid to retirees |
1,500,000 |
|
Decrease in defined benefit obligation due to changes in actuarial assumptions |
200,000 |
The fair value of plan assets at the end of the current year is
A P7,800,000
B P8,250,000
C P8,700,000
D P7,950,000
Step by step
Solved in 2 steps
