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At January 1, 2021, DBT Inc. had plan assets of $300,000 and a defined benefit obligation of the same amount based on projected costs. During
At January 1, 2021, DBT Inc. had plan assets of $300,000 and a defined benefit obligation of the same amount based on projected costs.
During 2021, the current service cost was $25,000, the discount rate on the DBO and plan assets was 10%, actual return on plan assets was $40,000, contributions by DBT were $35,000, benefits paid were $19,000, and the cost of past service benefits granted effective December 31, 2021, was $15,000.
Required:
Prepare a pension work sheet and journal entries for DBT for 2021 assuming that DBT follows IFRS (9.5 marks).
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