Question
THE GO COMPANY The record of Go Company for its defined benefit plan shows the following balances: Plan assets, January 1, 2X16 P5,000,000 Defined benefit
THE GO COMPANY
The record of Go Company for its defined benefit plan shows the following balances:
Plan assets, January 1, 2X16
P5,000,000
Defined benefit obligation, January 1, 2X16
5,800,000
2X16 information:
Current service cost
800,000
Discount rate
10%
Contributions made
1,850,000
Benefits paid
440,000
Past service cost as a result of a plan amendment
2,800,000
Plan assets, at fair value, December 31, 2X16
7,710,000
Defined benefit obligation, remeasured at December 31, 2X16
9,600,000
Required:
Using defined benefit plan worksheet, compute for the following(3 items x 5 points):
- Retirement benefit expense to be reported in profit or loss section;
- Remeasurement of defined benefit liability (net actuarial gain) in other comprehensive income; and
- Defined benefit liability in statement of financial position.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started