8. Prepare journal entry to record the employee benefit expense. 19. Compute for the Fair Value Plan Asset (FVPA) as of December 31. 20. Compute for the projected benefit obligation on December 31.
Charlton Company provided the following information concerning a defined benefit plan at the beginning of
current year prior to the adoption of revised PAS 19:
Debit Credit
Fair value of plan assets 4,750,000
Unamortized past service cost 1,250,000
Projected benefit obligation 5,500,000
Unrecognized actuarial gain 850,000
The transactions for the current year relating to the defined benefit plan are as follows:
Current service cost 925,000
Discount rate 6%
Actual return on plan assets 485,000
Contribution to the plan 1,350,000
Benefits paid to retirees 995,000
Increase in projected benefit obligation due to changes in actuarial assumptions 150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
18. Prepare
19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.
20. Compute for the projected benefit obligation on December 31.
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