Superman Inc. maintains a defined benefit pension plan. At the beginning of 2022 the pension plan has assets of $700,000 and a defined benefit obligation of $900,000. The discount rate chosen by the actuary is 9%. Current service costs for 2022 are $60,000 while some past service costs arose due to a plan amendment at the beginning of the year of $20,000. In 2022, the company contributed $75,000 to the plan at the end of the year. The benefits paid out of the plan to pensioners during 2022 amounted to $50,000 and this occurred evenly throughout the year. The plan assets at the end of the year were actually $802,250 Complete a worksheet that will calculate the movement in all company and pension plan related accounts. Record the journal entry needed to account for the pension expense in 2022 assuming Superman uses ASPE and then redo the entry assuming IFRS is used. Identify the pension plan's funded status and the asset or liability reported on the Balance Sheet at December 31, 2022.
Superman Inc. maintains a defined benefit pension plan. At the beginning of 2022 the pension plan has assets of $700,000 and a defined benefit obligation of $900,000. The discount rate chosen by the actuary is 9%. Current service costs for 2022 are $60,000 while some past service costs arose due to a plan amendment at the beginning of the year of $20,000. In 2022, the company contributed $75,000 to the plan at the end of the year. The benefits paid out of the plan to pensioners during 2022 amounted to $50,000 and this occurred evenly throughout the year. The plan assets at the end of the year were actually $802,250
Complete a worksheet that will calculate the movement in all company and pension plan related accounts.
Record the
Identify the pension plan's funded status and the asset or liability reported on the Balance Sheet at December 31, 2022.
Step by step
Solved in 4 steps
