(Defined Benefit Expense, Work Sheet, ASPE, IFRS) The following facts apply to the pension plan of Yorke Inc. for the year 2023. Yorke applies ASPE.

Plan assets, January 1, 2023 $490,000

Defined benefit obligation, funding basis, January 1, 2023 389,000

Defined benefit obligation, accounting basis, January 1, 2023 490,000

Discount/interest rate 8.5%

Annual pension service cost 40,000

Contributions 30,000

Actual return on plan assets 49,700

Benefits paid to retirees 33,400

Instructions

Using a work sheet, calculate defined benefit expense for the year 2023, and provide the entries to recognize the expense and contributions for the year assuming that Yorke has chosen the funding measure of its defined benefit obligation as its accounting policy choice. Discuss what adjustments would need to be made to your calculations and entries in part (a) if Yorkes accounting policy choice was the accounting measure of its defined benefit obligation. Calculate defined benefit expense if IFRS had been applied to this plan. Comment on any difference between this expense and the defined benefit expense calculated in part (b).