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Under both ASPE and IFRS for the above pension plan determine the proper amounts and how they should be presented in the 2019 financial statements.
Under both ASPE and IFRS for the above pension plan determine the proper amounts and how they should be presented in the 2019 financial statements.
For ASPE finance costs are to be calculated using opening balances
Company A, a public company, sponsors a defined benefit pension plan. The current service cost is determined as of the beginning of the year. During the tear the Company decided to increase the liability for service already performed before 2019. All contributions and benefit payments are assumed to occur evenly over the year. The following amounts relate to Company A s pension experience as determined by annual actuarial valuations: 2019 8.0% 5.0% 4.0% Assumptions Expected long-term rate of return on plan assets Discount rate Assumed rate of salary escalation Average remaining service period of active employees expected to receive benefits under the pension plan (years) Annual amounts Current service cost effective Jan 1 Contributions by the company evenly over year 12 $450,000 420,000 Benefit payments evenly over year Pension liability Jan. 1 Pension liability Dec. 31 Fair value of plan assets Jan. 1 Fair value of plan assets Dec. 31 Past service costs 340,000 5,500,000 6,600,000 5,200,000 5,750,000 700,000 REQUIRED: Company A, a public company, sponsors a defined benefit pension plan. The current service cost is determined as of the beginning of the year. During the tear the Company decided to increase the liability for service already performed before 2019. All contributions and benefit payments are assumed to occur evenly over the year. The following amounts relate to Company A s pension experience as determined by annual actuarial valuations: 2019 8.0% 5.0% 4.0% Assumptions Expected long-term rate of return on plan assets Discount rate Assumed rate of salary escalation Average remaining service period of active employees expected to receive benefits under the pension plan (years) Annual amounts Current service cost effective Jan 1 Contributions by the company evenly over year 12 $450,000 420,000 Benefit payments evenly over year Pension liability Jan. 1 Pension liability Dec. 31 Fair value of plan assets Jan. 1 Fair value of plan assets Dec. 31 Past service costs 340,000 5,500,000 6,600,000 5,200,000 5,750,000 700,000 REQUIREDStep by Step Solution
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