Question
Telford Corporation, a chain of tourism-based businesses, sponsors a defined benefit pension plan for its employees. Telford follows IFRS. The plans trustee reports the following
Telford Corporation, a chain of tourism-based businesses, sponsors a defined benefit pension plan for its employees. Telford follows IFRS. The plans trustee reports the following information for calendar Year 5:
Defined benefit obligation, Jan 1............................. $312,000
Fair value of plan assets, Jan 1............................... 240,000
Current service cost................................................... 48,000
Actual return on plan assets..................................... 18,000
Contributions (made at the end of the year).......... 36,000
Benefits paid to retirees............................................ 72,000
Interest (discount) rate.............................................. 6%
Past service costs (as of Jan. 1, )............ 4,800
Instructions
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Fill in the pension spreadsheet below.
Remeasurement gain/loss | Pension expense | Cash | Net defined benefit liab/asset | DBO | Plan assets | |
72,000 cr | 312,000 | 240,000 | ||||
Current service cost | ||||||
Past service costs | ||||||
Interest cost | ||||||
Expected return | ||||||
Remeasurement gain/loss | ||||||
Contributions | ||||||
Benefits paid |
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Provide the following figures:
Pension expense for Year 5
DBO ending balance
Plan assets ending balance
Net defined benefit liability/asset ending balance
Remeasurement gain/loss ending balance
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Prepare the pension-related journal entries for Year 5.
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