Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with thefollowing beginning balances:Fair Value of Plan Assets are Php 200,000.00Defined Benefit Obligation is Php is 250,000.00The following are other information relating to the years 2021, 2022, and 2023:202320222021P26,000.00 P 19,000.00 P 16,000.00Current service costDiscount rateActual return on plan assetsContributions to the planBenefits paid to retiree10%10%10%24,000.0048,000.0021,000.0022,000.0020,000.0040,000.0016,400.0016,000.0014,000.00Other information:1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php160,000.002. On December 31, 2023, there were changes in the actuarial assumptions that establishes adefined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00.Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the halances and theactivities of the pensio.

RECONCILITION OF PLAN ASSETS AND DEFINED BENEFIR OBLIGATION (DBO) (AMT IN Php) PARTICULARS…

Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2021 P26,000.00 P 19,000.00 P 16,000.00 10% 20,000.00 16,000.00 14,000.00 2023 2022 Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree 10% 10% 24,000.00 48,000.00 21,000.00 22,000.00 40,000.00 16,400.00 Other information: 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presentino the halances and the activities of the pensio.

Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2021 P26,000.00 P 19,000.00 P 16,000.00 10% 20,000.00 16,000.00 14,000.00 2023 2022 Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree 10% 10% 24,000.00 48,000.00 21,000.00 22,000.00 40,000.00 16,400.00 Other information: 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presentino the halances and the activities of the pensio.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 7E

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Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2023 2022 2021 Current service cost P26,000.00 P 19,000.00 P 16,000.00 Discount rate 10% 10% 10% Actual return on plan assets Contributions to the plan 24,000.00 48,000.00 22,000.00 40,000.00 20,000.00 16,000.00 14,000.00 Benefits paid to retiree 21,000.00 16,400.00 Other information: 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the pension. Indicate…
PROBLEM NO. 1 Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2023 2022 2021 P26,000.00 P 19,000.00 P 16,000.00 10% 10% 10% 20,000.00 24,000.00 22,000.00 48,000.00 40,000.00 16,000.00 21,000.00 16,400.00 14,000.00 Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree Other information: 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the…
Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: 2023 2022 2021 Current service cost P26,000.00 P 19,000.00 16,000.00 Discount rate 10% 10% 10% Actual return on plan 24,000.00 22,000.00 20,000.00 assets Contributions to the plan 48,000.00 40,000.00 16,000.00 Benefits paid to retiree 21,000.00 16,400.00 14,000.00 Other information: The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00 Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the pension. Indicate in the…
Wildhorse Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. Pension expense for 2025 $89,400 105,700 10,800 64,500 40,200 640,200 710,100 152,200 10%
Sunland Company provides the following information about its defined benefit pension plan for the year 2025. Service cost Contribution to the plan Prior service cost amortization Actual and expected return on plan assets Benefits paid Plan assets at January 1, 2025 Projected benefit obligation at January 1, 2025 Accumulated OCI (PSC) at January 1, 2025 Interest/discount (settlement) rate Compute the pension expense for the year 2025. +A Pension expense for 2025 $ $91,400 102,900 9,600 64,900 40,600 632,300 686,100 147,300 11%
rane importers provides the following pension plan Fair value of pension plan assets, January 1, 2025 Fair value of pension plan assets, December 31, 2025 Contributions to the plan in 2025 Benefits paid retirees in 2025 Tormation. Actual return on plan assets for 2025 $ $2,575,000 2,914,000 299,000 366,000 From the data above, compute the actual return on the plan assets for 2025.
Crane Enterprises Ltd. provides the following information about its defined benefit pension plan: Balances or Values at December 31, 2023 Defined benefit obligation Vested benefit obligation Fair value of plan assets $2,710,000 1,629,393 2,255,546 Other pension plan data: Current service cost for 2023 93,000 Actual return on plan assets in 2023 129,000 Return on plan assets in 2023 using discount rate 173,920 Interest on January 1, 2023 defined benefit obligation 250,000 Funding of plan in 2023 91,406 Benefits paid 139,000 (a) Calculate the January 1, 2023 balances for the pension-related accounts if Crane follows IFRS. Defined benefit obligation Fair value of plan assets Net defined benefit +A +A
The following information pertains to a defined benefit pension plan that Arora Inc. sponsors in 2020. PBO balance, January 1, 2020 $160,000 Service cost 19,000 Interest cost 11,200 Prior service cost adjustment based on past service, January 1, 2020 30,000 Amortization of prior service cost 3,000 Actuarial gain on PBO 6,000 Benefits paid to retirees 2,500 Contributions to plan 18,000 What is the PBO balance on December 31, 2020? Select one: a. $228,700 b. $216,700 c. $211,700 d. $193,700
Carla Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2019, with the following beginning balances: plan assets $ 197,800; projected benefit obligation $ 252,000. Other data relating to 3 years’ operation of the plan are as follows. 2019 2020 2021 Annual service cost $ 15,800 $ 19,300 $ 26,000 Settlement rate and expected rate of return 10 % 10 % 10 % Actual return on plan assets 17,700 21,740 24,100 Annual funding (contributions) 15,800 39,700 47,300 Benefits paid 13,900 16,100 21,200 Prior service cost (plan amended, 1/1/20) 161,100 Amortization of prior service cost 54,200 41,000 Change in actuarial assumptions establishes a December 31, 2021, projected benefit obligation of: 522,400 Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each…
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, thefollowing information relevant to the plan has been accumulated:Defined benefit obligation, 1/1 P11,250,000Fair value of plan assets, 1/1 10,500,000Current service cost 1,050,000Past service cost 2,200,000Actual return on plan assets 600,000Decrease in defined benefit obligation due tochanges in actuarial assumptions300,000Discount rate 8%Requirements:1. In the working papers computations, what balance of plan assets will be determined?2. In the working papers computations, what balance of benefit obligation will be determined?3. Calculate the amount that the entity would recognize in profit or loss for the year in accordancewith the revised PAS 19.4. Calculate the amount that the entity would recognize in other comprehensive income for theyear in accordance with the revised PAS 19.
Happy Woolly Inc. provides the following information about its postretirement benefit plan for the year 2019. (In Euros) Service cost €90,000 Contribution to the plan €56,000 Actual return on plan assets €2,000 Benefits paid € 40,000 Plan assets at January 1, 2019 €710,000 Defined postretirement benefit obligation at January 1, 2019 €760,000 Accumulated OCI (Loss) at January 1, 2019 100 (Dr-Loss) Discount (interest) rate 9% Required: Compute the postretirement benefit expense for 2019 and give your explanation!
The following information relates to the pension plan of Brown company.Defined benefit obligation, January 1, 2020 - P 4,000,000Fair value of plan assets, January 1, 2020 - 3,600,000The following information is for the year 2021:Contributions to the plan - P1,000,000Benefits paid - 500,000Discount rate - 10%Service cost for year 2021 - 1,200,000Actual return on plan assets - 400,000Actuarial loss on defined benefit obligation - 150,000 How much is the retirement benefit expense for the year 2021?