Ultimate Company provided the following information in relation to a defined benefit plan for the current year: Problem 18-22 (IFRS) January 1 December 31 Fair value of plan assets Projected benefit obligation 2,600,000 2,000,000 Prepaid/acerued benefit cost - surplus 600,000 200,000 3,000,000 2,100,000 Asset ceiling Effect of asset ceiling 900,000 300,000 600,000 400,000 Current service cost Contribution to the plan Benefits paid Discount rate 100,000 350,000 150,000 10% 1. What is the actual return on plan assets for the current year: a. 200,000 b. 350,000 c. 150,000 d. 260,000 2 What is the actuarial gain due to decrease in PBO? a. 50,000 b. 40,000 . 30,000 d. 3. What amount should be reported as employee benefit expense? a. 200,000 b. 100,000 80,000 C. d. 40,000 4 What is the net remeasurement loss for the current year? a. 110,000 b. 220,000 c. 270,000 d. 170,000

Ultimate Company provided the following information in relation to a defined benefit plan for the current year: Problem 18-22 (IFRS) January 1 December 31 Fair value of plan assets Projected benefit obligation 2,600,000 2,000,000 Prepaid/acerued benefit cost - surplus 600,000 200,000 3,000,000 2,100,000 Asset ceiling Effect of asset ceiling 900,000 300,000 600,000 400,000 Current service cost Contribution to the plan Benefits paid Discount rate 100,000 350,000 150,000 10% 1. What is the actual return on plan assets for the current year: a. 200,000 b. 350,000 c. 150,000 d. 260,000 2 What is the actuarial gain due to decrease in PBO? a. 50,000 b. 40,000 . 30,000 d. 3. What amount should be reported as employee benefit expense? a. 200,000 b. 100,000 80,000 C. d. 40,000 4 What is the net remeasurement loss for the current year? a. 110,000 b. 220,000 c. 270,000 d. 170,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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?
B. An entity provided the following information during the current year:January 1 December 31Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10% REQUIRED:7. Compute the net remeasurement loss for the current year
B. An entity provided the following information during the current year:January 1 December 31Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10% REQUIRED:8. Compute the defined benefit cost
B. An entity provided the following information during the current year:January 1 December 31Fair value of plan assets 6,000,000 9,000,000Projected benefit obligation 4,500,000 5,000,000Prepaid/accrued benefit cost – surplus 1,500,000 4,000,000Asset ceiling 1,000,000 2,500,000Effect of asset ceiling 500,000 1,500,000During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000,and contribution to the plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10% REQUIRED: 6. Compute the employee benefit expense for the current year
17 Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the employee benefit expense for the current year? Group of answer choices 930,000 900,000 870,000 800,000 PreviousNext
15. Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the employee benefit expense for the current year? Group of answer choices 900,000 930,000 870,000 800,000
12 Richelle Company provided the following information during the current year: January 1 December 31 Fair value of plan assets 6,000,000 8,500,000 Projected benefit obligation 5,000,000 6,500,000 Prepaid/accrued benefit cost - surplus 1,000,000 2,000,000 Asset ceiling 700,000 1,200,000 Effect of asset ceiling 300,000 800,000 During the year, entity recognized current service cost of P1,000,000, actual return on plan assets of P400,000, and contribution to plan of P2,100,000. The discount rate is 10%. What is the net remeasurement loss for the current year? Group of answer choices 670,000 700,000 270,000 730,000 PreviousNext
13. The following information are taken from the actuarial valuation report for an entity's defined benefit plan: Fair value of plan assets, Jan 1 1,500,000 Return on plan assets 180,000 Employer contributions 45,000 Present value of defined benefit obligation, Jan 1 1,800,000 Current service cost 450,000 Benefits paid during the period 75,000 Actuarial gain 10,000 Discount rate 12% What is the net defined benefit liability (asset) as of December 31?
10 At the beginning of the current year, the memorandum records of Anne Company’s defined benefit plan showed the following: Fair value of plan assets P 7,500,000 Defined benefit obligation (11,000,000) Prepaid(accrued) defined benefit exp. (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan P1,200,000 Benefits paid to retirees 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000 The defined benefit obligation at the end of the current year is Group of answer choices P11,800,000 P11,600,000 P10,500,000 P11,400,000
13 The memorandum records of Galindez Trading at January 1, 2021 show the following data: Define Benefit Obligation 2,600,000 Fair value of plan asset 3,000,000 The following information for 2021 is also provided: Service cost 800,000 Actual return on plan assets 300,000 Benefits paid 350,000 Contributions to the plan 780,000 Actuarial loss on remeasurement of defined benefit obligation 100,000 Discount rate 9% How much is the net defined benefit liability/asset that will be shown on December 31, 2021 statement of financial position? Group of answer choices 346,000 prepaid 454,000 prepaid 346,000 accrued 454,000 accrued
William and Raj Company provided the following information for the year:Projected benefit obligation - January 1 P 700,000Fair value of plan assets - January 1 560,000Pension benefits paid during the year 50,000Current service cost for the year 350,000Past service cost for the year (vesting period 5 years) 85,000Actual return on plan assets 36,000Contributions to the plan 300,000Actuarial loss due to change in assumptions on projected benefit obligation 40,000Discount or settlement rate 10%Expected return on plan assets 12%1. What is the employee benefit expense for the current year?2. How much is the actuarial gain/loss on return on plan assets?3. What is the prepaid/accrued balance of the pension at yearend?4. How much is the defined benefit cost?5. If the pension benefits paid during the year is worth P50,000 but the company was able to pay only P45,000, what would be the employee benefitexpense for the current year assuming the above given is the same?
7.9-10 At the beginning of the current year, the memorandum records of Anne Company’s defined benefit plan showed the following: Fair value of plan assets P 7,500,000 Defined benefit obligation (11,000,000) Prepaid(accrued) defined benefit exp. (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan P1,200,000 Benefits paid to retirees 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000 Calculate the amount to be recognized in the statement of financial position at the end of the current year in accordance with the revised PAS 19 Group of answer choices P3,500,000 P3,650,000 P4,000,000 P3,600,000 Calculate the amount that the entity would recognize…