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Pen Fen Corp has a defined benefit pension expense plan for its employees. In the year ended Dec 31, 2019, Pen Fen gathered the following
Pen Fen Corp has a defined benefit pension expense plan for its employees. In the year ended Dec 31, 2019, Pen Fen gathered the following information ( the company uses ASPE)
- Contributions ......................................................... $500,000
- Expected & Actual Return on Plan Assets ....... 10%
- Interest rate on Obligations ................................ 12%
- Service costs relating to past services ............. $100,000
- Actuarial Loss ....................................................... $40,000
- Current Service costs .......................................... $630,000
- DBO Jan 1 ,2019................................................ $720,000
- FV Plan Assets Jan 1 , 2019............................ $590,000
- Benefits Paid.......................................................... $450,000
Required
- Calculate the Pension expense for 2019
- Prepare the relevant Journal Entries
- Explain how your answer for part 1 will be different if Pen Fen uses IFRS no J/E required
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