At the beginning of the current year, the memorandum records of Fischl Company’s defined benefit plan showed the following: Fair value of plan assets P7,500,000 Defined benefit obligation (11,000,000) Prepaid (accrued) benefit expense (P3,500,000) Fischl determined that its current service cost was P1,000,000 and the interest cost is 10%. The expected return on plan asset was 12% but the actual return during the year was 8%. Other related information at the end of the year: Contribution to the plan P1,200,000 Benefits paid to retirees 1,500,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 200,000
At the beginning of the current year, the memorandum records of Fischl Company’s defined benefit
plan showed the following:
Fair value of plan assets P7,500,000
Defined benefit obligation (11,000,000)
Prepaid (accrued) benefit expense (P3,500,000)
Fischl determined that its current service cost was P1,000,000 and the interest cost is 10%. The
expected return on plan asset was 12% but the actual return during the year was 8%. Other related
information at the end of the year:
Contribution to the plan P1,200,000
Benefits paid to retirees 1,500,000
Decrease in defined benefit obligation due to changes in
actuarial assumptions
200,000
REQUIREMENTS:
1. What will be presented in the income statement in relation to the defined benefit plan?
2. What will be presented in the
plan?
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