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At the beginning of the current year, the memorandum records of Anne Company's defined benefit plan showed the following: Fair value of plan assets Defined benefit obligation Prepaid(accrued) defined benefit exp. P 7,500,000 (11,000,000) (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan Benefits paid to retirees Decrease in defined benefit obligation due to changes in actuarial assumptions P 1,200,000 500,000 200,000 The fair value of plan assets at the end of the current year is P8,700,000 P7,800,000 P8,250,000 P7,950,000 Calculate the net amount that the entity would recognize in OCI for the year in accordance with the revised PAS 19 P200,000 loss P200,000 gain P50,000 loss P50,000 gain The defined benefit obligation at the end of the current year is P10,500,000 P11,800,000 P11,600,000 P11,400,000

At the beginning of the current year, the memorandum records of Anne Company's defined benefit plan showed the following: Fair value of plan assets Defined benefit obligation Prepaid(accrued) defined benefit exp. P 7,500,000 (11,000,000) (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan Benefits paid to retirees Decrease in defined benefit obligation due to changes in actuarial assumptions P 1,200,000 500,000 200,000 The fair value of plan assets at the end of the current year is P8,700,000 P7,800,000 P8,250,000 P7,950,000 Calculate the net amount that the entity would recognize in OCI for the year in accordance with the revised PAS 19 P200,000 loss P200,000 gain P50,000 loss P50,000 gain The defined benefit obligation at the end of the current year is P10,500,000 P11,800,000 P11,600,000 P11,400,000

FINANCIAL ACCOUNTING
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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At the beginning of the current year, the memorandum records of Anne Company's defined benefit plan showed the following: Fair value of plan assets Defined benefit obligation Prepaid(accrued) defined benefit exp. P 7,500,000 (11,000,000) (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan Benefits paid to retirees Decrease in defined benefit obligation due to changes in actuarial assumptions P 1,200,000 1,500,000 200,000 The fair value of plan assets at the end of the current year is P8,700,000 P7,800,000 P8,250,000 P7,950,000 Calculate the net amount that the entity would recognize in OCI for the year in accordance with the revised PAS 19 P200,000 loss P200,000 gain P50,000 loss P50,000 gain The defined benefit obligation at the end of the current year is P10,500,000 P11,800,000 P11,600,000 P11,400,000
Transcribed Image Text:At the beginning of the current year, the memorandum records of Anne Company's defined benefit plan showed the following: Fair value of plan assets Defined benefit obligation Prepaid(accrued) defined benefit exp. P 7,500,000 (11,000,000) (P3,500,000) The entity determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan assets was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan Benefits paid to retirees Decrease in defined benefit obligation due to changes in actuarial assumptions P 1,200,000 1,500,000 200,000 The fair value of plan assets at the end of the current year is P8,700,000 P7,800,000 P8,250,000 P7,950,000 Calculate the net amount that the entity would recognize in OCI for the year in accordance with the revised PAS 19 P200,000 loss P200,000 gain P50,000 loss P50,000 gain The defined benefit obligation at the end of the current year is P10,500,000 P11,800,000 P11,600,000 P11,400,000
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