Part 1 (17 marks = 25 Hawk Corporation is a publicly owned company that follows IFRS. On December 31, 2019. Hawk's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $9,200,000 Pension Plan Assets 7,600,000 13 On January 1, 2020, Hawk acquired the operations of TRX Ltd. As one of the conditions of the purchase, Hawk agreed that TRX's employees would be included in Hawk's defined benefit pension plan, and would be granted credit for the past service of TRX's employees. The actuary estimated the value of the prior service amount granted on January 1, 2020 to be $460,000. Hawk's actuary provided the following information for the year ending December 31, 2020 Current year service cost: $719.000 Employer contributions for the year: 620.000 Benefits paid to retirees: 410,000 Actuarial increase in pension obligations for 2020: 129,500 Yield on high quality corporate debt: 7% 15 remental borrowing rate: 6% cember 31, 2020: 8.200.000 service of TRX's employees. The actual amount granted on January 1, 2020 to be $460,000. : Hawk's actuary provided the following information for the year ending December 31, 2020: Current year service cost: $719,000 Employer contributions for the year: 620,000 Benefits paid to retirees: 410,000 Actuarial increase in pension obligations for 2020: 129,500 Yield on high quality corporate debt: 7% 5: Hawk's incremental borrowing rate: 6% 13 12 Fair value of plan assets @ December 31, 2020: 8,200,000 4 REQUIRED: [Note: You may use a worksheet to answer parts a, b and c. of this question, however it is not required.) age 6: Question 1 (5 points) Provide a reconciliation of the opening (January 1st) to the closing (December 31st) balance for each of (i) the Plan Assets and (ii) the Defined Benefit Obligation for Hawk in 2020 15 Question 2 (3 points) Calculate (1) Hawk's pension expense for the ended December 31, 2020 (ii) Hawk's remeasurement gain or loss for the ended December 31, 2020 13 12 ge 6 Question 3 (2 points) Calculate Hawk's Net Defined Benefit (Liability)/Asset as of January 1, 2020 and its Net Defined Benefit (Liability)/Asset as of December 31, 2020 3 Auction 11 mainte! Question 4 (4 points) Provide the related journal entries for the pension expense, remeasurement gain or loss and funding of Hawk's Pension Plan for 2020 under IFRS 13 1/2 points) Willows ASPE (instead of IFRS). How would the joumal nosinn nlanfaa 2001 ndersa Question 5 (2 points) Assume instead that Hawk follows ASPE (instead of IFRS). How would the journal entry or entries be different for Hawk's pension plan for 2020 under ASPE (Hint: a funding journal entry is not required for part this part). 5: 13 12 * ge 6: 5 Question 6 (1 point) What is the funded status of Hawk's pension plan at December 31, 2020? 13 12 6: Part 1 (17 marks = 25 Hawk Corporation is a publicly owned company that follows IFRS. On December 31, 2019. Hawk's financial records indicated the following information related to the company's defined benefit pension plan: Defined Benefit Obligation $9,200,000 Pension Plan Assets 7,600,000 13 On January 1, 2020, Hawk acquired the operations of TRX Ltd. As one of the conditions of the purchase, Hawk agreed that TRX's employees would be included in Hawk's defined benefit pension plan, and would be granted credit for the past service of TRX's employees. The actuary estimated the value of the prior service amount granted on January 1, 2020 to be $460,000. Hawk's actuary provided the following information for the year ending December 31, 2020 Current year service cost: $719.000 Employer contributions for the year: 620.000 Benefits paid to retirees: 410,000 Actuarial increase in pension obligations for 2020: 129,500 Yield on high quality corporate debt: 7% 15 remental borrowing rate: 6% cember 31, 2020: 8.200.000 service of TRX's employees. The actual amount granted on January 1, 2020 to be $460,000. : Hawk's actuary provided the following information for the year ending December 31, 2020: Current year service cost: $719,000 Employer contributions for the year: 620,000 Benefits paid to retirees: 410,000 Actuarial increase in pension obligations for 2020: 129,500 Yield on high quality corporate debt: 7% 5: Hawk's incremental borrowing rate: 6% 13 12 Fair value of plan assets @ December 31, 2020: 8,200,000 4 REQUIRED: [Note: You may use a worksheet to answer parts a, b and c. of this question, however it is not required.) age 6: Question 1 (5 points) Provide a reconciliation of the opening (January 1st) to the closing (December 31st) balance for each of (i) the Plan Assets and (ii) the Defined Benefit Obligation for Hawk in 2020 15 Question 2 (3 points) Calculate (1) Hawk's pension expense for the ended December 31, 2020 (ii) Hawk's remeasurement gain or loss for the ended December 31, 2020 13 12 ge 6 Question 3 (2 points) Calculate Hawk's Net Defined Benefit (Liability)/Asset as of January 1, 2020 and its Net Defined Benefit (Liability)/Asset as of December 31, 2020 3 Auction 11 mainte! Question 4 (4 points) Provide the related journal entries for the pension expense, remeasurement gain or loss and funding of Hawk's Pension Plan for 2020 under IFRS 13 1/2 points) Willows ASPE (instead of IFRS). How would the joumal nosinn nlanfaa 2001 ndersa Question 5 (2 points) Assume instead that Hawk follows ASPE (instead of IFRS). How would the journal entry or entries be different for Hawk's pension plan for 2020 under ASPE (Hint: a funding journal entry is not required for part this part). 5: 13 12 * ge 6: 5 Question 6 (1 point) What is the funded status of Hawk's pension plan at December 31, 2020? 13 12 6