Question
Wildhorse Inc., a Canadian company traded on the Venture Exchange of the Toronto Stock Exchange, has sponsored a non-contributory defined benefit pension plan for its
Wildhorse Inc., a Canadian company traded on the Venture Exchange of the Toronto Stock Exchange, has sponsored a non-contributory defined benefit pension plan for its employees since 1992. Relevant information about the pension plan on January 1, 2020, is as follows:
1.The defined benefit obligation amounted to $1,278,000 and the fair value of pension plan assets was $746,000.2.On January 3, 2020, the pension plan was amended, resulting in a reduction in employee benefits for past service with a present value of $45,500 on this date.
On December 31, 2020, the actuaries determined that the defined benefit obligation on this date was $1,550,000, and the fair value of the pension plan assets amounted to $975,000. An 8% discount rate was used in the actuarial present value calculations in the pension plan. The present value of benefits attributed by the pension benefit formula to employee service in 2020 amounted to $50,000. Although the employer's contribution to the plan assets was $143,750 in 2020, no pension benefits were paid or payable to retirees during this period.
(a)
Reconciliation schedule
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