Maple Construction Corp ,( a company that follows IFRS) has a defined benefit pension plan Information concerning the 20X7 and 20X8 fiscal years is presented below From the plan actuary Current service cost in 20X7 is $430,000 and in 20X8 is $488,000 Defined benefit obligation is $4,975,000 at the beginning of 20X7 New past service cost in 20X8 is $45,000, a reduction in benefits Accumulated OCI amounts are losses at the beginning of 20X7, amounting to $787,000 Benefits paid to retireesat end of year, $235,000 in 20X7, and $295,000 in 20X8 Actuarial revaluation in 20X7 showed a $406,000 increase in the obligation due to changes in mortality Revaluations take place every four years From the plan trustee Plan assets at market value at the beginning of 20X7 were $3,705,000 20X7 contributions at end of year were $510,000 and in 20X8, $525,000 Actual earnings were $276,000 in 20X7 and $80,000 in 20X8 Other information Yield on long term debt, stable in 20X7 and 20X8, 6 The opening net defined benefit liability on the SFP is the opening net amount of the defined benefit obligation and opening fund assets Required Spreadsheet for 20X7 and 20X8 that determines pension expense and also the closing net defined benefit asset or liability account and accumulated OCI

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 27, 2024

Maple Construction Corp. ,( a company that follows IFRS) has a defined benefit pension plan. Information concerning the 20X7 and 20X8 fiscal years is presented

Maple Construction Corp. ,( a company that follows IFRS) has a defined benefit pension plan. Information concerning the 20X7 and 20X8 fiscal years is presented below:

From the plan actuary:

Current service cost in 20X7 is $430,000 and in 20X8 is $488,000.
Defined benefit obligation is $4,975,000 at the beginning of 20X7.
New past service cost in 20X8 is $45,000, a reduction in benefits.
Accumulated OCI amounts are losses at the beginning of 20X7, amounting to $787,000.
Benefits paid to retireesat end of year, $235,000 in 20X7, and $295,000 in 20X8.
Actuarial revaluation in 20X7 showed a $406,000 increase in the obligation due to changes in mortality. Revaluations take place every four years.
From the plan trustee:
Plan assets at market value at the beginning of 20X7 were $3,705,000.
20X7 contributions at end of year were $510,000 and in 20X8, $525,000.
Actual earnings were $276,000 in 20X7 and $80,000 in 20X8.
Other information:
Yield on long-term debt, stable in 20X7 and 20X8, 6%.
The opening net defined benefit liability on the SFP is the opening net amount of the
defined benefit obligation and opening fund assets.
Required:
Spreadsheet for 20X7 and 20X8 that determines pension expense and also the closing net defined benefit asset or liability account and accumulated OCI.