1. How much is the defined benefit cost taken to profit or loss for the year 2020? 2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019 statement of financial position? if prepaid --> positive accrued --> negative
1. How much is the defined benefit cost taken to profit or loss for the year 2020? 2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019 statement of financial position? if prepaid --> positive accrued --> negative
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. How much is the defined benefit cost taken to profit or loss for the year 2020?
2. How much is the net prepaid/ accrued defined benefit cost that was shown on December 31,2019
![The memorandum records of ABC Company at January 1,2020 show the following:
Defined Benefit Obligation
P 2,600,000
Fair value of Plan Assets
3,000,000
The following information for 2020 is also provided:
Service cost
P 800,000
Discount rate
9%
Actual return on plan assets
Benefits paid
Contributions to the plan
Actuarial loss on remeasurement of
Defined Benefit Obligation
300,000
350,000
780,000
100,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60cc1572-4668-4ce9-ad64-514651302470%2Fa181a15f-f963-4dd9-92aa-cf71511b043e%2Fsqmew2x_processed.png&w=3840&q=75)
Transcribed Image Text:The memorandum records of ABC Company at January 1,2020 show the following:
Defined Benefit Obligation
P 2,600,000
Fair value of Plan Assets
3,000,000
The following information for 2020 is also provided:
Service cost
P 800,000
Discount rate
9%
Actual return on plan assets
Benefits paid
Contributions to the plan
Actuarial loss on remeasurement of
Defined Benefit Obligation
300,000
350,000
780,000
100,000
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