PART A

PART B

On January 1, 2017, Xiamen Company made amendments to its defined benefit pension plan that resulted in 61,600 yuan of past service cost. The plan has 5,210 active employees with an average expected remaining working life of 14 years. There currently are no retirees under the plan. Assume that a foreign company using IFRS 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, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP. 1 Record the entry for the past service cost as per IFRS. 2 Record the entry for the deferred past service cost as per U.S. GAAP. 3 Record the entry for the past service cost as per U.S. GAAP. 4 Record the entry for the past service cost as per IFRS. 5 Record the entry for the past service cost as per U.S. GAAP. 6 Record the entry for the past service cost as per IFRS. 1 Record the entry for the deferred past service cost which was recognized in Profit and Loss account as per IFRS due to conversion to U.S. GAAP. 2 Record the entry for the deferred past service cost which was recognized in prior year Profit and Loss account as per IFRS due to conversion to U.S. GAAP. 3 Record the entry for the past service cost as per U.S. GAAP