6. Net Benefit Expense for 20x67. Net Benefit Expense for 20x78. The Gain/(Loss) attributable to the FVPA for 20x8.9. The Gain/(Loss) attributable to the Defined Benefit Obligation for 20x9.10. The Debit/(Credit) to Other Comprehensive Income for 20x9. The following information is given about a funded defined benefit plan of ROYCE CompanyOn January, 20x6, Royce Company initiated a pension plan for its employees. The company'sactuary estimates that the present value of the retroactive benefits related to this pension planamounts to Php 400,000. The remaining service life of the covered active employees is 10 years.Relevant data for 20x6 to 20x9 are as follows20x620x720x820x9Current service cost68,000100,000200,000210,000Expected settlement rate8%10%12%5%Funding made at December 31150,000165,000146,000300,000Expected rate of return10%14%10%Actual return on plant assets (PA)15,000Market value of PA at December 31330,000500,000825,000Actuarial DBO at December 31650,0001,000,0001,200,000Benefits paid to employees during 20x9 amounts to 100,000Note: DBO = Defined Benefit Obligation

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6. Net Benefit Expense for 20x6 7. Net Benefit Expense for 20x7 8. The Gain/(Loss) attributable to the FVPA for 20x8.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

6. Net Benefit Expense for 20x6
7. Net Benefit Expense for 20x7
8. The Gain/(Loss) attributable to the FVPA for 20x8.
9. The Gain/(Loss) attributable to the Defined Benefit Obligation for 20x9.
10. The Debit/(Credit) to Other Comprehensive Income for 20x9.

The following information is given about a funded defined benefit plan of ROYCE Company
On January, 20x6, Royce Company initiated a pension plan for its employees. The company's
actuary estimates that the present value of the retroactive benefits related to this pension plan
amounts to Php 400,000. The remaining service life of the covered active employees is 10 years.
Relevant data for 20x6 to 20x9 are as follows
20x6
20x7
20x8
20x9
Current service cost
68,000
100,000
200,000
210,000
Expected settlement rate
8%
10%
12%
5%
Funding made at December 31
150,000
165,000
146,000
300,000
Expected rate of return
10%
14%
10%
Actual return on plant assets (PA)
15,000
Market value of PA at December 31
330,000
500,000
825,000
Actuarial DBO at December 31
650,000
1,000,000
1,200,000
Benefits paid to employees during 20x9 amounts to 100,000
Note: DBO = Defined Benefit Obligation

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