Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company G offers a defined benefit pension plan to its employees. At December 31, 2018, the present value of the defined benefit obligation of the
Company G offers a defined benefit pension plan to its employees. At December 31, 2018, the present value of the defined benefit obligation of the pension plan was $7,800,000 and the fair value of the plan assets was $8,000,000. Information pertaining to the pension plan in 2019 follows: The actuary advised that current service cost was $900,000. The discount rate used in actuarial assumptions was 5%. On June 1, 2019, Company G retroactively improved the benefits under the plan to January 1, 2019. The cost of this improvement was determined by the plan actuary to be $975,000. Benefits paid to retirees on July 1, 2019 were $750,000. . Company G contributed $675,000 to the pension plan on March 1, 2019. . The present value of the defined benefit obligation at December 31, 2019, was $8,125,000. The fair market value of plan assets as at December 31, 2019, was $8,375,000. Company G has a December 31 year end. . Required: Prepare the worksheet and journal entries for 2019 using IFRS. Company G offers a defined benefit pension plan to its employees. At December 31, 2018, the present value of the defined benefit obligation of the pension plan was $7,800,000 and the fair value of the plan assets was $8,000,000. Information pertaining to the pension plan in 2019 follows: The actuary advised that current service cost was $900,000. The discount rate used in actuarial assumptions was 5%. On June 1, 2019, Company G retroactively improved the benefits under the plan to January 1, 2019. The cost of this improvement was determined by the plan actuary to be $975,000. Benefits paid to retirees on July 1, 2019 were $750,000. . Company G contributed $675,000 to the pension plan on March 1, 2019. . The present value of the defined benefit obligation at December 31, 2019, was $8,125,000. The fair market value of plan assets as at December 31, 2019, was $8,375,000. Company G has a December 31 year end. . Required: Prepare the worksheet and journal entries for 2019 using IFRS
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started