The difference in accounting for actuarial gains and losses and past service costs under IFRS and ASPE.
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The following information was obtained from the financial statements of X Inc.
Defined Benefit Plan Obligations
Pension Benefits
2020……………………..2019
Defined Benefit Obligation(DBO):
Balance, beginning of year…………………………………………$40,032…………………..42,370
Current Service Cost…………………………………………………… 864…………………. 1,126
Interest Cost…………………………………………………………… 2,344…………………... 2,255
Benefits Paid……………………………………………………………(3,198)………………….. (2,881)
Actuarial Gains………………………………………………………... (3,339)………………….. (2,838)
Balance, end of year………………………………………………….$36,703……………….….$40,032
Defined Benefit Plan Assets
Pension Benefits
2020…………..…………2019
Balance, beginning of year…………………………………………$75,891………………….$90,828
Expected return on Plan Assets……………………………………. 5,599………………….. 6,723
Employee contributions………………………………………………. 180………………….. 197
Benefits Paid……………………………………………………………(3,198)…………………. (2,881)
Actuarial Losses…………………………………………………………(745)………………….(18,976)
Balance, end of year…………………………………………………….$77,727………………..$75,891
Required:-
(a)
The difference in accounting for actuarial gains and losses and past service costs under IFRS and ASPE.
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- Question Description The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee…Case 2 Following information is relevant to a defined benefit pension plan of PT XYZ for the year 2020: Plant Assets Rp’ puluh juta Balance at January 01, 2020 600 Expected return on plan assets 61 Contribution received 49 Benefits paid -40 Actuarial gain (balancing figure) 15 685 Plant Liabilities: Balance at January 01, 2020 640 Interest cost 52 Current Service Cost 21 Benefit paid -40 Actuarial gain (loss) (balancing figure) 42 715 Calculate: (i) Pension expense to be recognised in profit or loss for…*see attached What is the compensation expense for 2021?a. 120,000b. 240,000c. 200,000d. 660,000
- 14.Shirley Company obtained the following information at the beginning of the currentyear prior to the adoption of PAS 19R:Projected benefit obligation 9,000,000Fair value of plan assets 10,000,000Unrecognized actuarial loss 1,500,000During the current year, the actuary determined the current service cost at P2,500,000and the discount rate at 10%. The actual return on plan assets was P 1,200,000.Contribution to the plan amounted to P500,000. The actuarial loss due to increase in PBOduring the year was P900,000 and the average remaining service period is 10 years.What is the employee benefit expense?What is the amount of prepaid/accrued benefit cost that should be shown on the December 31, 2019 statement of financial position? 560,000 700,000 840,000 2,520,000 answer not givention 8Income statement for the year ended 31 December, 2019 of KKMTN Ghana Ltd2018 2019ȼ ‘000 ȼ ‘000Turnover 420,000 523,600Cost of sales (330,000) (417,200)Gross profit 89,000 106,400Expenses:Administration 44,600 50,200Selling and distribution 15,400 (60,000) 19,600 (69,800)Profit before interest 29,000 36,600Debenture interest - (2,800)Net profit before tax 29,000 33,800Taxation (8,000) (10,000)Net Profit after tax 21,000 23,800Ordinary dividend paid 8,400 9,250Ordinary shares issued 12 million and trading at ȼ3 each as at yesterday onGSE.You are required to compute the following investment ratios:a). Earnings per shareb). Dividend per sharec). Payout ratiod). Price earnings ratioe). Earnings yield
- CHOOSE THE LETTER OF THE CORRECT ANSWER What is the employee benefit expense for the current year? a. 1,180,000b. 2,100,000c. 1,850,000d. 1,050,000 What is the remeasurement gain or loss on plan assets on Dec. 31? a. 670,000 gainb. 670,000 lossc. 650,000 gaind. 650,000 lossYou are the General Manager of Entity A. You have received the actuarial report for your company’s defined benefit plan. The report shows the following information: PV of DBO – Jan. 1, 20x1 1,500,000 FVPA – Jan. 1, 20x1 1,200,000 PV of DBO – Dec. 31, 20x1 1,800,000 FVPA, end. – Dec. 31, 20x1 1,310,000 Actuarial gain 100,000 Return on plan assets 110,000 Discount rate 5% When reporting on your company’s year-end highlights of financial summary, which of the following will you report to the Board of Directors (the ‘big bosses’)?Benefit obligation, 1/1/2022, P9MFVPA, 1/1/2022, P10MCurrent service cost, P1.7MPast service cost, P500KBenefits paid to retirees, P2.2MContribution to the plan, P2MActual return on plan assets, P1.5MActuarial loss due to remeasurement of benefit obligation, P400KDiscount rate, 12%There are no asset ceilings at the beginning and end of the year.What is the benefit obligation of DEF Co. on Dec. 31, 2022?
- Benefit obligation, 1/1/2022, P9MFVPA, 1/1/2022, P10MCurrent service cost, P1.7MPast service cost, P500KBenefits paid to retirees, P2.2MContribution to the plan, P2MActual return on plan assets, P1.5MActuarial loss due to remeasurement of benefit obligation, P400KDiscount rate, 12%There are no asset ceilings at the beginning and end of the year.How much is the defined benefit cost for 2022?Following information is relevant to a defined benefit pension plan of PT XYZ for the year2020: Plant AssetsBalance at January 01, 2020 600Expected return on plan assets 61Contribution received 49Benefits paid -40Actuarial gain (balancing figure) 15Total 685 Plant Liabilities:Balance at January 01, 2020 640Interest cost 52Current Service Cost 21Benefit paid -40Actuarial gain (loss) (balancingfigure) 42Total 715 Calculate:(i) Pension expense to be recognised in profit or loss for the year ended December 31,2020.(ii) Net liabilities to be shown in the Statement of Financial Position as of December31, 2020The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee contributions……………………………………………….…