ed (1,200) actuarial revaluation, December 31, 2016, change in mortality assumptions, incr
The following data pertains to a defined benefit (DB) pension plan:
defined benefit obligation, December 31, 2015 25,000
long-term interest rate on corporate bonds 10%
past service cost, December 31, 2016, benefits and
liability reduced (1,200)
actuarial revaluation, December 31, 2016, change in
mortality assumptions, increased liability 600
actual return on plan assets - 2016 2,100
fair value of plan assets, December 31, 2015 16,000
funding payment at December 31, 2016 4,000
benefits paid to retirees - 2016 2,000
current service cost - 2016 1,900
Required:
- Calculate the net defined benefit pension asset/liability at December 31, 2015.
- For December 31, 2016, calculate the defined benefit obligation, fair value of plan assets and the net defined benefit pension asset or liability.
- Calculate the three pension accounting elements and
journal entries for service cost, net interest and revaluations for 2016.
Step by step
Solved in 4 steps with 6 images
