Health Beyond Boundaries, Ltd$.,$ runs a chain of private hospitals and clinics in several large

cities in Europe and North America. It has an established pension plan for several years since it

began operations. It uses the immediate recognition method with IFRS. Terms of the pension

plan as well as other information related to its activities for the year ended December $31,2015$

are as follows:

Interest Rate $-$

Service Costs $-$

$($T$)$ The expected earnings rate on plan assets and the discount rate

is set at $8\%$;

For $2015,$ the current service costs amounted to $$1,005,000.$

Some time late in $2014,$ the company agreed with its employees

to an amendment in the plan's future benefits payout formula.

Thus employees in service on January $1,2015,$ would receive a

credit of $$2,047,500$ for their past service, beginning in $2015.$

Defined Benefits Obligation This above mentioned past service cost equaled $12\%$ of the

balance of the Defined Benefits Obligation existing on

December $31,2014.$

Actual Returns $-$

Funding $-$

Benefits Paid $-$

E$.$ The plan received $$649,740$ as returns from the investment of

its assets.

$.$ The plan on December $31,2014$ was underfunded by $30\%.$

E All funding contributions are made at the end of each year. The

total annual funding was computed with three components as

stated below in the next three items.

The company makes a one time payment of $$47,500$ in $2015$

towards funding the past service costs.

$.2.$ In addition, it also plans to fund the balance of the past

service cost, accrued in $2015,$ by making payments in eight

equal instalments each year starting in $2015.$

$3.$ The company has a policy of also funding $70\%$ of all its

annual current service costs.

$.$ Any actuarial revisions in its Defined Benefits Obligation, made

in any given year, are funded at the same rate of $70\%$ but the

payments for this are made during the following year.

$.$ There were no actuarial revisions during $2014.$

$$i The plan paid out $$1,530,000$ during the year to existing

retirees.

Revaluation $-$

The company had experienced a particularly difficult fiscal

year and decided to conduct an actuarial review of its plan

obligations. The review recommended that the balance of the

Defined Benefits Obligation, existing on December $31,2015$

before this review, be increased by $10\%.$ Prepare the necessary journal entries which the company would require to record the

aggregate effects of the pension fund activities of the plan.