A director of Company A shall receive a retirement benefit of 20% of final salary per annum for a contractual period of 3 years. The anticipated salary is P1,000,000 for 2020, P1,200,000 for 2021 and P1,500,000 for 2022. The discount rate is 10%. Compute for the ff: 1)Current service cost in 2020, 2021, and 2022 2)Interest expense in 2020, 2021, and 2022 3)PBO, Dec. 31,2020, Dec. 31,2021, and Dec. 31,2022

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Q: is expec actuary

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Q: service and interest cost.

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A: SOLUTION   FORMULA- ANNUAL RETIREMENT BENEFIT EXPENSE= QUARTERLY SALARY * NO OF QUARTER * 7.5%.

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A:

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Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.