Question 1- Pensions Commercial Drive Limited (CDL) has an employer funded defined benefit pension plan and has adopted the provisions of IFRS 19 permitting immediate recognition of pension plan performance. The following data is gathered for the year ended December 31, 2013. In this and all models studied at this introductory level, assume the current service cost, benefits paid and plan funding occur at the end of the period. In reality, all of these would be averaged during the period and the resulting expected asset return and interest cost would be calculated accordingly. Rate provided by the Actuary in deriving the Benefit Obligation and provided by Fund Manager in providing the expected return on Plan Assets..........5.0% B. Defined Benefit Obligation: Balance at January 1, 2013 $11,275,000 Current service cost.. 400,000 Plan enhancement, effective, Jan.1, 2013...... 100,000 Balance per actuary.... December 31, 2013. $12,177,500 Plan Assets: Balance at January 1, 2013. $9,062,500 Funding to the plan 575,000 (assume at year end) Benefits paid.. 306,250 Balance per actuary... December 31, 2013... $9,883,250 *** Required 1- Prepare the pension expense and funding entries for 2013. Show all supporting calculations. Assume EBL reports pension expense relating to normal net income as one line item. Round amounts to the nearest dollar; no cents. Items Cash Plan Assets Annual Pension Expense Experience Gains/Loss Accrued pension liability/ asset Defined Benefit Obligation OCT Balance, Jan 1 Current Service cost Interest on DBO Past Service cost Expected earnings PA Benefits paid Asturial gain/ loss on DBO Asturial gain/ loss on Plan assets Ending total (1 mark each line- 10 marks total) NOTE: Please note debits as positive amounts and credits as negative in (brackets) Show calculations here: Required 2: What would be reported on the Statement of Financial Position at December 31, 2013 in respect of the pension? How would it be classified? (2 marks) Question 1- Pensions Commercial Drive Limited (CDL) has an employer funded defined benefit pension plan and has adopted the provisions of IFRS 19 permitting immediate recognition of pension plan performance. The following data is gathered for the year ended December 31, 2013. In this and all models studied at this introductory level, assume the current service cost, benefits paid and plan funding occur at the end of the period. In reality, all of these would be averaged during the period and the resulting expected asset return and interest cost would be calculated accordingly. Rate provided by the Actuary in deriving the Benefit Obligation and provided by Fund Manager in providing the expected return on Plan Assets..........5.0% B. Defined Benefit Obligation: Balance at January 1, 2013 $11,275,000 Current service cost.. 400,000 Plan enhancement, effective, Jan.1, 2013...... 100,000 Balance per actuary.... December 31, 2013. $12,177,500 Plan Assets: Balance at January 1, 2013. $9,062,500 Funding to the plan 575,000 (assume at year end) Benefits paid.. 306,250 Balance per actuary... December 31, 2013... $9,883,250 *** Required 1- Prepare the pension expense and funding entries for 2013. Show all supporting calculations. Assume EBL reports pension expense relating to normal net income as one line item. Round amounts to the nearest dollar; no cents. Items Cash Plan Assets Annual Pension Expense Experience Gains/Loss Accrued pension liability/ asset Defined Benefit Obligation OCT Balance, Jan 1 Current Service cost Interest on DBO Past Service cost Expected earnings PA Benefits paid Asturial gain/ loss on DBO Asturial gain/ loss on Plan assets Ending total (1 mark each line- 10 marks total) NOTE: Please note debits as positive amounts and credits as negative in (brackets) Show calculations here: Required 2: What would be reported on the Statement of Financial Position at December 31, 2013 in respect of the pension? How would it be classified? (2 marks)