Chen Group sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following
Question:
Chen Group sponsors a defined benefit pension plan for its employees. On January 1, 2019, the following balances related to this plan (amounts in thousands).
Plan assets (fair value)......................................¥270,000
Defined benefit obligation..................................340,000
Pension asset/liability......................................70,000 Cr.
OCI-Loss................................................................39,000
As a result of the operation of the plan during 2019, the actuary provided the following additional data at December 31, 2019.
Service cost for 2019...........................................¥45,000
Actual return on plan assets in 2019..................27,000
Contributions in 2019..........................................65,000
Benefits paid retirees in 2019.............................41,000
Discount (interest) rate..............................................7%
Instructions
a. Compute pension expense for Chen Group for the year 2019 by preparing a pension worksheet that shows the journal entry for pension expense.
b. Indicate the pension amounts reported in the financial statements?
Step by Step Answer:
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield