Great Cosmetics Corp., a company reporting under IFRS, has a defined benefit pension plan. Pension information concerning the 2019 and 2020 fiscal years is presented below (in millions): Information provided by the pension plan actuary Defined benefit obligation (DBO), December 31, 2019 $2,000 Past service cost (PSC) from a plan amendment made January 2, 2020 400 Current service cost (CSC) for 2020 520 2020 interest cost on DBO, based on 10% discount rate 180 2020 actuarial gain on DBO arising from a change in estimate 250 Benefits paid 0 Funding for the year 0 Information provided by the pension plan trustee Fair value of plan assets, January 1, 2020 $1,800 Actual return on plan assets 180 What is the net defined benefit liability/asset balance on the balance sheet at January 1, 2020? Question 14 options: a) $2,000 net defined benefit liability. b) $3,800 net defined benefit asset. c) $200 net defined benefit asset. d) $200 net defined benefit liability
Great Cosmetics Corp., a company reporting under IFRS, has a defined benefit pension plan. Pension information concerning the 2019 and 2020 fiscal years is presented below (in millions): Information provided by the pension plan actuary Defined benefit obligation (DBO), December 31, 2019 $2,000 Past service cost (PSC) from a plan amendment made January 2, 2020 400 Current service cost (CSC) for 2020 520 2020 interest cost on DBO, based on 10% discount rate 180 2020 actuarial gain on DBO arising from a change in estimate 250 Benefits paid 0 Funding for the year 0 Information provided by the pension plan trustee Fair value of plan assets, January 1, 2020 $1,800 Actual return on plan assets 180 What is the net defined benefit liability/asset balance on the balance sheet at January 1, 2020? Question 14 options: a) $2,000 net defined benefit liability. b) $3,800 net defined benefit asset. c) $200 net defined benefit asset. d) $200 net defined benefit liability
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
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Question
Great Cosmetics Corp., a company reporting under IFRS, has a defined benefit pension plan. Pension information concerning the 2019 and 2020 fiscal years is presented below (in millions):
Information provided by the pension plan actuary
| Defined benefit obligation (DBO), December 31, 2019 | $2,000 |
| Past service cost (PSC) from a plan amendment made January 2, 2020 | 400 |
| Current service cost (CSC) for 2020 | 520 |
| 2020 interest cost on DBO, based on 10% discount rate | 180 |
| 2020 actuarial gain on DBO arising from a change in estimate | 250 |
| Benefits paid | 0 |
| Funding for the year | 0 |
Information provided by the pension plan trustee
| Fair value of plan assets, January 1, 2020 | $1,800 |
| Actual return on plan assets | 180 |
What is the net defined benefit liability/asset balance on the balance sheet at January 1, 2020?
Question 14 options:
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