Based on IAS 19 (Adjustment 2014) and the following data: Balance as of December 31, 2014: Current service cost Rp 6.000.000 Interest costs Rp 2.000.000 Past service costs Rp 1.000.000 10% Amortization of net actuarial losses Rp 500.000 Unrecognized actuarial losses Rp 17.000.000 Curtailment Rp 1.000.000 Adjustment Rp 1.500.000 What post-employment benefits should be recognized in the income statement for the year ended December 31, 2014 (the Company provides a post-employment benefit plan - defined benefit): A. Rp 29.000.000 B. Rp 12.000.000 C. Rp 9.000.000 D. Rp 6.000.000
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
Based on IAS 19 (Adjustment 2014) and the following data:
| Balance as of December 31, 2014: | |
| Current service cost | Rp 6.000.000 |
| Interest costs | Rp 2.000.000 |
| Past service costs | Rp 1.000.000 |
| 10% Amortization of net actuarial losses | Rp 500.000 |
| Unrecognized actuarial losses | Rp 17.000.000 |
| Curtailment | Rp 1.000.000 |
| Adjustment | Rp 1.500.000 |
What post-employment benefits should be recognized in the income statement for the year ended December 31, 2014 (the Company provides a post-employment benefit plan - defined benefit):
A. Rp 29.000.000
B. Rp 12.000.000
C. Rp 9.000.000
D. Rp 6.000.000
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