Question
International Paper Company's 2016 annual report disclosed the following post-employment information: In millions 2016 2015 Change in projected benefit obligation: Benefit obligation, January 1 $
International Paper Company's 2016 annual report disclosed the following post-employment information:
| In millions | 2016 | 2015 | ||
| Change in projected benefit obligation: | ||||
| Benefit obligation, January 1 | $ 275 | $ 306 | ||
| Service cost | 1 | 1 | ||
| Interest cost | 11 | 11 | ||
| Participants' contributions | 5 | 12 | ||
| Actuarial (gain) loss | 31 | -- | ||
| Plan amendments | -- | -- | ||
| Benefits paid | (44 | ) | (57 | ) |
| Less: Federal subsidy | 1 | 2 | ||
| Currency impact | -- | -- | ||
| Benefit obligation, December 31 | $ 280 | $ 275 | ||
| Change in plan assets: | ||||
| Fair value of plan assets, January 1 | $ | $ | ||
| Company contributions | 39 | 45 | ||
| Participants' contributions | 5 | 12 | ||
| Benefits paid | (44 | ) | (57 | ) |
| Fair value of plan assets, December 31 | $ | $ |
| a. | How much total benefits did former employees receive during the year? |
| b. | How much did the company pay to former employees for post-employment benefits during the year? |
| c. | What proportion of the obligation is funded? Explain. |
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Financial Accounting For School Administrators Tools For School
Authors: Ronald E. Everett, Donald R. Johnson, Bernard W. Madden
3rd Edition
1610487710, 978-1610487719
