Bouter Corporation Limited (BCL) began operations in 1996 and in 2006 adopted a defined benefit pension plan for its employees. By January 1, 2020, the defined benefit obligation was $510,000. 

On January 2, 2020, for the first time, BCL agreed to a new union contract that granted retroactive benefits for services that its unionized employees had provided in years before the pension plan came into effect. The actuary informed BCL's chief accountant that, using its normal discount rate of 6%, benefits relating to these past services would cost the company $240,000. 

On January 2, 2020, for the first time, BCL agreed to a new union contract that granted retroactive benefits for services that its unionized employees had provided in years before the pension plan came into effect. The actuary informed BCL's chief accountant that, using its normal discount rate of 6%, benefits relating to these past services would cost the company $240,000. 

At the end of 2020, the actuary revised some key estimates, resulting in an actuarial loss of $15,500 related to the defined benefit obligation. 

Instructions 

a. Calculate the pension expense that should be reported for BCL's year ended December 31, 2020, assuming the company reports under IFRS. Round to the nearest dollar. 

b. Calculate the pension expense that should be reported for BCL's year ended December 31, 2020, assuming the company reports under ASPE. Round to the nearest dollar. 

c. Reconcile the difference in pension expense reported in net income between IFRS and ASPE. 

d. Calculate the amounts in the pension account to be reported on the December 31, 2020 SFP under both IFRS and ASPE. Comment on the difference in this amount, if any. In each case, provide a reconciliation of the account's 2020 opening to closing balance. Round to the nearest dollar. 

e. How would an ASPE accounting policy choice of using a funding basis for the actuarial valuation of the defined benefit obligation affect the cash flows, if at all, in light of the company's policy regarding its contributions to the pension plan?