Question
Pronghorn Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Pronghorn financial records indicated the following information related to the companys
Pronghorn Corporation is a publicly traded company that follows IFRS. On December 31, 2019, Pronghorn financial records indicated the following information related to the companys defined benefit pension plan:
Defined Benefit Obligation | $3,752,000 | |
Pension Plan Assets | 3,752,000 |
On July 1, 2020, Pronghorn acquired the operations of Trap Ltd. As one of the conditions of the purchase, Pronghorn agreed that Traps employees would be included in Pronghorns defined benefit pension plan, and would be granted credit for the past service of Traps employees. The actuary estimated the value of the prior service amount granted on July 1, 2020 to be $194,000. Pronghorn actuary provided the following information on December 31, 2020:
Current year service cost | $885,000 | |
Employer contributions for the year | 931,000 | |
Benefits paid to retirees | 318,000 | |
Actuarial increase in pension obligations | 49,000 | |
Discount rate | 6% | |
Actual return on assets | 4% |
Prepare a pension worksheet for Pronghorn Corporation for the year ending December 31, 2020.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started