Monday Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1, 2023, the
Question:
Monday Corporation sponsors a defined benefit pension plan and reports under IFRS. On January 1, 2023, the company reported plan assets of $1,000 and a defined benefit obligation of $1,100 (all amounts in thousands of dollars). During 2023, the current service cost was determined to be $90, the discount rate on the DBO and plan assets was 6%, and the actual return on the plan assets for the year was $55. Monday made contributions of $92 into the plan at the end of the year and the benefits paid amounted to $64. The plan was amended effective December 31, 2023, with the cost of the past service benefits granted being $40. Determine the deficit of the pension plan at January 1, 2023, and calculate its December 31, 2023 deficit balance directly, by identifying which 2023 pension events increased the deficit, which decreased it, and which had no effect.
Step by Step Answer:
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy