At the beginning of the current year, the memorandum records of OPPA Co's defined benefit plan showed the following: Fair value plan assets 7,500,000 Defined benefit obligation (11,000,000) Prepaid (accrued) pension expense (3,500,000) 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 P 1,200,000 Benefits paid to retires 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000 4. Compute for the fair value of plan assets at the end of the current year. 5. Compute for the defined benefit obligation at the end of the current year.
At the beginning of the current year, the memorandum records of OPPA Co's defined benefit plan showed the following:
Fair value plan assets 7,500,000
Defined benefit obligation (11,000,000)
Prepaid (accrued) pension expense (3,500,000)
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 P 1,200,000
Benefits paid to retires 1,500,000
Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000
4. Compute for the fair value of plan assets at the end of the current year.
5. Compute for the defined benefit obligation at the end of the current year.
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