Question
On January 1, 2020, Hulk Ltd., who follows IFRS, reported the following balances relating to their defined benefit pension plan: .... Defined benefit obligation............................ $1,600,000
On January 1, 2020, Hulk Ltd., who follows IFRS, reported the following balances relating to their defined benefit pension plan:
.... Defined benefit obligation............................ $1,600,000
.... Fair value of plan assets............................... 1,550,000
Other data related to the pension plan for calendar 2020 are:
.... Current service cost..................................... 70,000
.... Past service costs effective Jan 1st, 2020......... 50,000
.... Contributions to the plan.............................. 102,000
.... Benefits paid.............................................. 100,000
.... Actual return on plan assets.......................... 125,000
.... Interest (discount) rate................................. 9%
.... Defined benefit obligation, Dec 31st, 2020...... $1,790,000
Instructions
a. Calculate the fair value of plan assets at December 31, 2020.
b. Calculate pension expense for 2020.
c. Prepare a pension worksheet for 2020.
d. Prepare the journal entries to record the pension expense and the contributions for 2020.
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Information Technology Auditing An Evolving Agenda
Authors: Jagdish Pathak
1st Edition
3642060579, 978-3642060571
