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Jean Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 Fair value of plan assets, 1/1 Current service cost P5,000,000 4,500,000 500,000 1,000,000 250,000 1,050,000 250,000 Past service cost Return on plan assets FV of DBO settled Gain on settlement Decrease in defined benefit obligation due to changes in actuarial assumptions 400,000 8% Discount rate

Jean Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 Fair value of plan assets, 1/1 Current service cost P5,000,000 4,500,000 500,000 1,000,000 250,000 1,050,000 250,000 Past service cost Return on plan assets FV of DBO settled Gain on settlement Decrease in defined benefit obligation due to changes in actuarial assumptions 400,000 8% Discount rate

Intermediate Accounting: Reporting And Analysis
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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Jean Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 Fair value of plan assets, 1/1 P5,000,000 4,500,000 500,000 1,000,000 250,000 1,050,000 250,000 Current service cost Past service cost Return on plan assets FV of DBO settled Gain on settlement Decrease in defined benefit obligation due to changes in actuarial assumptions 400,000 Discount rate 8% Requirements: 1. Calculate the amount that the entity would recognize in profit or loss. (Service costs & Net Interest) 2. Calculate the amount that the entity would recognize in other comprehensive. (Remeasurement) 3. In the working papers computations, what balance of plan assets will be presented by Jean Co on December 31? 4. In the working papers computations, what balance of benefit obligation will be determined by Jean Co on December 31?
Transcribed Image Text:Jean Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 Fair value of plan assets, 1/1 P5,000,000 4,500,000 500,000 1,000,000 250,000 1,050,000 250,000 Current service cost Past service cost Return on plan assets FV of DBO settled Gain on settlement Decrease in defined benefit obligation due to changes in actuarial assumptions 400,000 Discount rate 8% Requirements: 1. Calculate the amount that the entity would recognize in profit or loss. (Service costs & Net Interest) 2. Calculate the amount that the entity would recognize in other comprehensive. (Remeasurement) 3. In the working papers computations, what balance of plan assets will be presented by Jean Co on December 31? 4. In the working papers computations, what balance of benefit obligation will be determined by Jean Co on December 31?
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