Use the following information for questions 1 through 4:

Table: Selected information of Ouyang Inc.

Financial Information20132012Net income19,28217,263Net periodic benefit cost920728Pension informationBenefit obligationService cost495382Ending balance7,9186,771Plan assetsCompany contribution293277Expected return on plan assets2,7382,482Actuarial gain182273Ending balance8,2317,827Funded status3131,056Unrecognized past service cost10989Unrecognized actuarial loss (gain)382311Net asset (liability) in the balance sheet8041,456

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Question 11pts

If Ouyang Inc. had reported under IFRS, its 2013 balance sheet will report a:

$804 million asset;

$804 million liabilities;

$313 million asset;

$313 million liabilities;

$19,282 million asset;

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Question 21pts

The net adjustment to net income in the cash flow statement to reconcile net income to operating cash flow related to the pension plan is:

920 million

293 million

627 million

804 million

495 million

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Question 31pts

The estimated increase in the pension obligation due to benefits earned by current employees of Ouyang Inc. in 2013 is:

920 million

293 million

627 million

804 million

495 million

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Question 41pts

In 2013, the actual return on plan assets is:

2,738 million

2,920 million

182 million

804 million

495 million

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Question 51pts

Which of the following is true about a defined contribution pension plan?

the employer bears the investment risks of the pension plan;

the employee bears the investment risks of the pension plan;

the employer must ensure there are sufficient assets in the plan;

the employee must ensure there are sufficient liabilities in the plan;

the employer must report the funded status to the public of the plans of all employees.