Question
Skywalker Inc. is a publicly traded company that follows IFRS. On October 30, 2019, Skywalker's accounting records included the following information: Defined benefit obligation $
Skywalker Inc. is a publicly traded company that follows IFRS. On October 30, 2019, Skywalker's accounting records included the following information:
Defined benefit obligation $ 1,410,712
Pension plan assets $ 1,536,846
Skywalker's actuary provided the following information about its defined benefit pension plan for the year ended October 30, 2020:
Current year service cost $ 84,843
Prior service cost, granted December 1, 2019 $ 169,760
Employer contributions for the year $ 92,240
Benefits paid to retirees $ 28,309
Expected return on assets 6%
Actual return on assets 7%
Discount rate 6%
Defined benefit obligation at October 30, 2020 $ 1,714,332
Required:
a. Prepare a pension worksheet for Skywalker's pension plan for the year ended October 30, 2020.
- Prepare the journal entries required by Skywalker for the pension plan in 2020.
- Determine the funded status of the plan.
- Prepare the necessary journal entries for the pension for 2020 if Skywalker followed ASPE instead. A pension worksheet is not required.
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