Question
Tamarisk Corporation is a publicly owned company that follows IFRS. On December 31, 2019, Tamarisks financial records indicated the following information related to the companys
Tamarisk Corporation is a publicly owned company that follows IFRS. On December 31, 2019, Tamarisks financial records indicated the following information related to the companys defined benefit pension plan:
Defined Benefit Obligation | $ 7,649,200 | |
Pension Plan Assets | 7,298,100 |
On January 1, 2020, Tamarisk acquired the operations of AMX Ltd. As one of the conditions of the purchase, Tamarisk agreed that AMXs employees would be included in Tamarisks defined benefit pension plan, and would be granted credit for the past service of AMXs employees. The actuary estimated the value of the prior service amount granted on January 1, 2020 to be $ 321,700. Tamarisks actuary provided the following information on December 31, 2020:
Current year service cost | $ 358,200 | |
Employer contributions for the year | 441,900 | |
Benefits paid to retirees | 171,600 | |
Actuarial increase in pension obligations | 128,000 | |
Expected return on assets | 6% | |
Actual return on assets | 5% | |
Discount rate | 6% |
1) Prepare a pension worksheet for Tamarisk Corporation for the year ending December 31, 2020.
2) Prepare the journal entry to record the pension expense for 2020
3) What is Tamarisks funded status at December 31, 2020?
Remeasurement Gain/Loss OCI Annual Pension Expense Balance, January 1, 2020 (a) Current Service Cost (b) Past Service Cost > (c) Net Interest/Finance Cost (d) Asset Remeasurement Gain/Loss (e) Actuarial Gain/Loss
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