On January 1, 2020, Xiamen Company made amendments to its defined benefit pension plan that resulted in 61,400 yuan of past service cost. The plan has 5,280 active employees with an average expected remaining working life of 10 years. They're currently are no retirees under the plan.

Assume that Xiamen Company is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes.

Required: a) Prepare journal entries for the past service cost of the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP

b) Prepare the entries that the U.S. parent would make on the December 31, 2020, and December 31,

2021, conversion worksheets to convert IFRS balances to U.S. GAAP.

On January 1, 2020, Xiamen Company made amendments to its defined benefit pension plan that resulted in 61,400 yuan of past service cost. The plan has 5,280 active employees with an average expected remaining working life of 10 years. There currently are no retirees under the plan. Assume that Xiamen Company is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: a. Prepare journal entries for the past service cost for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP. b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U.S. GAAP. Complete this question by entering your answers in the tabs below. Prepare journal entries for the past service cost for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry for the past service cost as per IFRS. Note: Enter debits before credits