FINANCIAL ACCOUNTING 9TH
16th Edition
ISBN: 9781308821672
Author: Libby
Publisher: MCG/CREATE
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Chapter S, Problem 5P
To determine
Indicate the amount of defined benefit pension plan reported by Company WD on its 2012
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Analyzing and Interpreting Pension Disclosures DowDuPoint's 10-K report has the following disclosures related to its retirement plans ($ millions).
Obligations and Funded Status ($ millions)
December 31, 2018
Change in projected benefit obligations
Benefit obligations at beginning of year
$57,401
Service cost
651
Interest cost
1,638
Plan participants' contributions
29
Acturarial changes in assumptions and experience
(2,832)
Benefits paid
(3,223)
Plan amendments
34
Acquisitions/divestitures/other
(57)
Effect of foreign exchange rates
(627)
Benefit obligation at end of year
$53,014
Change in plan assets
Fair value of plan assets at beginning of year
$43,685
Actual gain on plan assets
(1,524)
Employer contributions
2,964
Plan participants' contributions
29
Benefits paid
(3,223)
Acquisitions/divestitures/other
(7)
Effect of foreign exchange rates
(462)
Fair value of plan assets at end of year
$41,462
Funded status
U.S. plan with plan assets…
Analyzing and Interpreting Pension Disclosures
E.I. Du Pont De Nemours and Co.'s 10-K report has the following disclosures related to its retirement plans ($ millions).
Obligations and Funded Status
December 31 ($ millions)
Change in benefit obligation
Pension Benefits
2012 2011
Benefit obligation at beginning of year
$27,083 $23,924
Service cost
277
249
1,165
1,253
24
21
Interest cost
Plan participants' contributions
Acturarial loss
Benefits paid
Amendments
Net effects of acquisitions/divestitures
Benefit obligation at end of year
Change in plan assets
Fair value of plan assets at beginning of year
Actual gain on plan assets
Employer contributions
Plan participants' contributions
Benefits paid
2,245 3,062
(1,593) (1,610)
(22)
2
182
$29,179 $27,083
$ 17,794 $18,403
2,326
471
848
341
24
21
(1,593) (1,610)
Net effects of acquisitions/divestitures
168
Fair value of plan assets at end of year
$19,399 $17,794
Funded status
U.S. plans with plan assets
$(6,625) $892
Non-U.S. plans with plan…
Pension Question
Sophia Consultants Inc. has had a defined benefit pension plan since January 1, 2018.
The following represents beginning balances as at January 1, 2022:
Plan Asset $1,155,300; Defined Benefit Obligation $1,275,000; Net Pension Liability $119,700
Additional Information is as follows for 2022:
Current Service cost is $186,000 for 2022
Company Funding/Contribution is $200,000 for 2022. Funding is made on December 31 of each year.
Actual return on assets is $55,900 for 2022.
There is an increase in obligation for $29,000 due to changes in Actuarial assumptions at Dec 31, 2022.
There are payments made equal to $80,000 per year to retired employees in 2022 (payments to retirees
are made at the end of the year on December 31).
Past service cost of $85,900 from plan amendment dated December 31, 2022: liability is increased
because benefits were increased on a retroactive basis.
For 2022, the assumed interest rate is 6%. Assume IFRS.
Required:
1. Determine Defined Benefit…
Chapter S Solutions
FINANCIAL ACCOUNTING 9TH
Ch. S - Defining a Lessor Which of the following best...Ch. S - Prob. 2MCQCh. S - Prob. 3MCQCh. S - Prob. 4MCQCh. S - Prob. 5MCQCh. S - Prob. 6MCQCh. S - Prob. 1MECh. S - Prob. 2MECh. S - Prob. 3MECh. S - Prob. 4ME
Ch. S - Prob. 1ECh. S - Prob. 2ECh. S - Prob. 3ECh. S - Prob. 4ECh. S - Calculating a Deferred Tax Liability LOS-5 On...Ch. S - Prob. 6ECh. S - Prob. 7ECh. S - Prob. 8ECh. S - Prob. 9ECh. S - Prob. 10ECh. S - Converting Operating Leases to Capital Leases...Ch. S - Converting Operating Leases to Capital Leases...Ch. S - Computing Effective Tax Rates LOS-4 Below is...Ch. S - Prob. 4PCh. S - Prob. 5PCh. S - Prob. 6PCh. S - Analyzing Starbuckss Lease Disclosures The...Ch. S - Analyzing Disneys Income Tax Disclosures The...
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