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Happy Woolly Inc. provides the following information about its postretirement benefit plan for the year 2019. (In Euros) Service cost 90,000 Contribution to the plan

Happy Woolly Inc. provides the following information about its postretirement benefit plan for the year 2019. (In Euros)

Service cost 90,000

Contribution to the plan 56,000

Actual return on plan assets 62,000

Benefits paid 40,000

Plan assets at January 1, 2019 710,000

Defined postretirement benefit obligation at January 1, 2019 760,000

Accumulated OCI (Loss) at January 1, 2019 100,000 (Dr-Loss)

Discount (interest) rate 9%

Required:

a. Compute the postretirement benefit expense for 2019 and give your explanation!

b. Based on PSAK 24 regarding employee benefits, how is severance pay defined, measured, and disclosed? Please explain your answer!

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