Question
Question 1 (Components of Defined Benefit Obligation and Plan Assets) The following data relate to Omega Company's pension plan for the year 2017: Actual return
Question 1 (Components of Defined Benefit Obligation and Plan Assets)
The following data relate to Omega Company's pension plan for the year 2017:
Actual return on plan assets | $70,000 |
Benefits paid | 45,000 |
Contributions to plan | 87,000 |
Fair value of plan assets at January 1, 2017 | 600,000 |
Cost of past service benefits granted effective December 31, 2017 | 34,000 |
Defined benefit obligation at January 1, 2017 | 627,000 |
Current service cost | 82,000 |
Actuarial loss | 39,000 |
Interest (discount) rate | 8% |
Part A
Prepare a pension worksheet for 2017 based on the IFRS approach. Show the journal entries for pension expense and contribution for 2017.
Part B
Prepare a pension worksheet for 2017 based on the ASPE approach. Show the journal entries for pension expense and contribution for 2017.
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