that is offering ahew 5 You are the controller of a newly established technology firm ees. The plan was established on January 1, 2017, with an initial contribution by the employer equal to the estimate of the past service costs for the existing group of employees. These employ work for the firm for 20 years, on average, prior to retirement. The company is considering going publie in the five years, and the president has asked you to keep her aware of the accounting changes in moving from ASpp IFRS. She wants to be sure that the company always chooses the accounting policies that are closest to IFRS so changes in the future when the company goes public will be minimized. In addition, she is interested in dem ing a history of profits so that the company can be taken public successfully. The following information is avail cial position tering a new Peision pran to its em P19-5 You are the controller of a newly established technology ees are expected to co nti SO for you to work with 2018 2019 2017 $75,000 70,000 75,000 12,000 Fair value of plan assets, beginning of year* DBO for funding purposes, beginning of year DBO for accounting purposes, beginning of year Current service cost for year Discount rate Past service costs granted, January 1 Actual earnings on plan assets Employer contributions for the year Benefits paid to retirees by trustee After the initial $75,000 contribution. $13,000 $14,500 75,000 6,500 12,000 10,000 15,000 4,000 8,000 16,000 5,000 Instructions (a) Without using a pension work sheet, determine the surplus or deficit position of the pension plan and the amoun reported on the statement of financial position at each year end, the pension expense for each of the thre year and any remeasurement (gain) loss recorded in OCI for each of the three years, applying IFRS (b) Without using a pen sion work sheet, determine the surplus or deficit position of the pension plan and reported on the balance shee at each year end,and the pension expense for each of the three years a State any assumptions you have made. a short report to the company president concerning the accounting for the new pension plan. ommendation to your employer about the approach that should be takn that is offering ahew 5 You are the controller of a newly established technology firm ees. The plan was established on January 1, 2017, with an initial contribution by the employer equal to the estimate of the past service costs for the existing group of employees. These employ work for the firm for 20 years, on average, prior to retirement. The company is considering going publie in the five years, and the president has asked you to keep her aware of the accounting changes in moving from ASpp IFRS. She wants to be sure that the company always chooses the accounting policies that are closest to IFRS so changes in the future when the company goes public will be minimized. In addition, she is interested in dem ing a history of profits so that the company can be taken public successfully. The following information is avail cial position tering a new Peision pran to its em P19-5 You are the controller of a newly established technology ees are expected to co nti SO for you to work with 2018 2019 2017 $75,000 70,000 75,000 12,000 Fair value of plan assets, beginning of year* DBO for funding purposes, beginning of year DBO for accounting purposes, beginning of year Current service cost for year Discount rate Past service costs granted, January 1 Actual earnings on plan assets Employer contributions for the year Benefits paid to retirees by trustee After the initial $75,000 contribution. $13,000 $14,500 75,000 6,500 12,000 10,000 15,000 4,000 8,000 16,000 5,000 Instructions (a) Without using a pension work sheet, determine the surplus or deficit position of the pension plan and the amoun reported on the statement of financial position at each year end, the pension expense for each of the thre year and any remeasurement (gain) loss recorded in OCI for each of the three years, applying IFRS (b) Without using a pen sion work sheet, determine the surplus or deficit position of the pension plan and reported on the balance shee at each year end,and the pension expense for each of the three years a State any assumptions you have made. a short report to the company president concerning the accounting for the new pension plan. ommendation to your employer about the approach that should be takn