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You are the auditor of Pharoah Inc., the Canadian subsidiary of a public multinational engineering company that offers a defined benefit pension plan to its
You are the auditor of Pharoah Inc., the Canadian subsidiary of a public multinational engineering company that offers a defined benefit pension plan to its eligible employees. Employees are permitted to join the plan after two years of employment, and benefits vest immediately. You have received the following information from the fund trustee for the year ended December 31, 2020: 5% Discount rate Rate of compensation increase 4% $11,207,220 429.850 Defined Benefit Obligation Defined benefit obligation at January 1, 2020 Current service cost Interest cost Benefits paid Actuarial loss, end of period 560.361 785,876 603,387 Plan Assets Fair value of plan assets at January 1, 2020 9.115.100 1.128.220 Actual return on plan assets, net of expenses Employer contributions Employee contributions 525,750 87.665 Benefits paid 785.876 Other relevant information: 1. The net defined benefit liability on January 1, 2020, is $2,092,120. Employee contributions to the plan are withheld as payroll deductions, and are remitted to the pension trustee along with the employer contributions. 2. (a) Prepare a pension work sheet for the company. Assume IFRS is followed. Gen Remeasurement (Gain) Loss (OCI) Annual Pension Expense Items $ tf Balance, Jan 1, 2020 (a) Service cost > (b) Net interest/finance cost > (c) Asset remeasurement gain > (d) Actuarial loss, liability (e) Employee contributions Expense entry, 12/31/20 $ $ $ > Net funding entry Balance, Dec. 31. 2020 Prepare a pension work sheet for the company. Assume IFRS is followed. Pharoah Inc. Pension Work She General Journal Entries Remeasurement (Gain) Loss (OCI) Annual Pension Expense Cash > $ $ $ > > > $ (
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