Q3(20 marks)

Presented below is information related to the defined benefit pension plan of Swiss Chard Ltd. for the year 2020. The corporation uses IFRS.

Defined benefit obligation, Jan 1 $375,000

Fair value of plan assets, Jan 1 350,000

Current service cost 300,000

Interest (discount) rate 10%

Expected & actual return on plan assets 9%

Past service cost (as of Jan 1) 25,000

Actuarial loss 14,900

Contributions to plan 290,000

Remeasurement loss on plan assets 11,500

Payments to retirees 250,000

Instructions

a) Calculate the pension expense to be reported on the income statement for 2020.

b) Calculate the amount to be shown as OCI for 2020.

c) Calculate the fair value of the plan assetsatDecember 31, 2020.

d) Prepare the journal entries to reflect the accounting for the company's pension plan for the year ending December 31, 2020.