Answer part C only The following information was obtained from the financial statements of X Inc. Defined Benefit Plan Obligations Pension Benefits 2020……………………..2019 Defined Benefit Obligation(DBO): Balance, beginning of year…………………………………………$40,032…………………..42,370 Current Service Cost…………………………………………………… 864…………………. 1,126 Interest Cost…………………………………………………………… 2,344…………………... 2,255 Benefits Paid……………………………………………………………(3,198)………………….. (2,881) Actuarial Gains………………………………………………………... (3,339)………………….. (2,838) Balance, end of year………………………………………………….$36,703……………….….$40,032 Defined Benefit Plan Assets Pension Benefits 2020…………..…………2019 Balance, beginning of year…………………………………………$75,891………………….$90,828 Expected return on Plan Assets……………………………………. 5,599………………….. 6,723 Employee contributions………………………………………………. 180………………….. 197 Benefits Paid……………………………………………………………(3,198)…………………. (2,881) Actuarial Losses…………………………………………………………(745)………………….(18,976) Balance, end of year…………………………………………………….$77,727………………..$75,891 Required:- (a) Calculate pension expense for 2020 (b) Explain the following:- The funded status of the pension plan in 2020 Contributory and non-contributory pension plans c) The difference in accounting for actuarial gains and losses and past service costs under IFRS and ASPE.
Answer part C only
The following information was obtained from the financial statements of X Inc.
Defined Benefit Plan Obligations
Pension Benefits
2020……………………..2019
Defined Benefit Obligation(DBO):
Balance, beginning of year…………………………………………$40,032…………………..42,370
Current Service Cost…………………………………………………… 864…………………. 1,126
Interest Cost…………………………………………………………… 2,344…………………... 2,255
Benefits Paid……………………………………………………………(3,198)………………….. (2,881)
Actuarial Gains………………………………………………………... (3,339)………………….. (2,838)
Balance, end of year………………………………………………….$36,703……………….….$40,032
Defined Benefit Plan Assets
Pension Benefits
2020…………..…………2019
Balance, beginning of year…………………………………………$75,891………………….$90,828
Expected return on Plan Assets……………………………………. 5,599………………….. 6,723
Employee contributions………………………………………………. 180………………….. 197
Benefits Paid……………………………………………………………(3,198)…………………. (2,881)
Actuarial Losses…………………………………………………………(745)………………….(18,976)
Balance, end of year…………………………………………………….$77,727………………..$75,891
Required:-
(a) Calculate pension expense for 2020
(b) Explain the following:-
- The funded status of the pension plan in 2020
- Contributory and non-contributory pension plans
c) The difference in accounting for actuarial gains and losses and past service costs under IFRS and ASPE.
Defined Benefit Plan -
Defined Benefit Plans are pension plans that provide benefits to employees upon retirement. A defined benefit plan that also provides a pension to the employees upon their retirement in addition to the return.
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