Pension data for Sterling Properties include the following: ($ in thousands)Service cost, 2024$ 132Projected benefit obligation, January 1, 2024400Plan assets (fair value), January 1, 2024500Prior service cost—AOCI (2024 amortization, $8)94Net loss—AOCI (2024 amortization, $1)115Interest rate, 9% Expected return on plan assets, 13% Actual return on plan assets, 14% Required:Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 9%. Determine the net pension cost.Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).

Pension cost is recorded in the financial statement of the company related to the cost that is…

Answered: Pension data for Sterling Properties…

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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	($ in thousands)
Service cost, 2024	$ 132
Projected benefit obligation, January 1, 2024	400
Plan assets (fair value), January 1, 2024	500
Prior service cost—AOCI (2024 amortization, $8)	94
Net loss—AOCI (2024 amortization, $1)	115
Interest rate, 9%
Expected return on plan assets, 13%
Actual return on plan assets, 14%

Required:

Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards (IFRS). The interest rate on high-grade corporate bonds is 9%. Determine the net pension cost.

Note: Enter your answer in thousands (i.e., 10,000 should be entered as 10).

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