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Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021: Prior service cost at Jan. 1,
Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:
| Prior service cost at Jan. 1, 2021, from plan amendment at the beginning of 2018 (amortization: $4 million per year) | $ | 28 | million |
| Net lossAOCI at Jan.1, 2021 (previous losses exceeded previous gains) | $ | 200 | million |
| Average remaining service life of the active employee group | 10 | years | |
| Actuary's discount rate | 7 | % | |
| ($ in millions) | Plan | |||||||||
| PBO | Assets | |||||||||
| Beginning of 2021 | $ | 600 | Beginning of 2021 | $ | 400 | |||||
| Service cost | 62 | Return on plan assets, | ||||||||
| 8% (10% expected) | 32 | |||||||||
| Interest cost, 7% | 42 | |||||||||
| Loss (gain) on PBO | (15 | ) | Cash contributions | 102 | ||||||
| Less: Retiree benefits | (36 | ) | Less: Retiree benefits | (36 | ) | |||||
| End of 2021 | $ | 653 | End of 2021 | $ | 498 | |||||
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Financial Accounting Working Papers Tools For Business Decision Making
Authors: Paul D. Kimmel ,Jerry J. Weygandt ,Donald E. Kieso
6th Edition
0470887931, 978-0470887936
