Question
DarwinInc. has a defined benefit plan for its employees. On December 31, 2019 the company's records showed the following information related to the plan: Pension
DarwinInc. has a defined benefit plan for its employees. On December 31, 2019 the company's records showed the following information related to the plan:
Pension plan assets$296,600Defined benefit obligation375,600
All employees are expected to receive benefits under the plan. The company's actuary provided the following information as at December 31, 2020:
Current year service cost$48,000Past service benefits, granted July 1, 2020
79,000Expected return on assets12%Actual return on assets10%Discount rate on DBO
12%Contributions for the year35,000Benefits paid to retirees16,500
Calculate pension expense forDarwinInc. for 2020, assuming ASPE is used.
Pension expense, 2020__________________
Calculate pension expense forDarwinInc. for 2020, assuming IFRS is used.
Pension expense, 2020__________________
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