Following information is relevant to a defined benefit pension plan of PT XYZ for the year2020:Rp' рuluhjutaPlant AssetsBalance at January 01, 2020Expected return on plan assets60061Contribution received49Benefits paidActuarial gain (balancing figure)-4015685Plant Liabilities:Balance at January 01, 2020640Interest cost52Current Service Cost21Benefit paidActuarial gain (loss) (balancingfigure)-4042715Calculate:(i)Pension expense to be recognised in profit or loss for the year ended December 31,2020.(ii)Net liabilities to be shown in the Statement of Financial Position as of December31, 2020

Pension Expense to be recognized in profit or loss For the year ended December 31, 2020.…

Answered: Calculate: (i) Pension expense to be…

Calculate: (i) Pension expense to be recognised in profit or loss for the year ended December 31, 2020. (ii) Net liabilities to be shown in the Statement of Financial Position as of December 31, 2020

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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Concept explainers

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.

Question

Following information is relevant to a defined benefit pension plan of PT XYZ for the year
2020:
Rp' рuluh
juta
Plant Assets
Balance at January 01, 2020
Expected return on plan assets
600
61
Contribution received
49
Benefits paid
Actuarial gain (balancing figure)
-40
15
685
Plant Liabilities:
Balance at January 01, 2020
640
Interest cost
52
Current Service Cost
21
Benefit paid
Actuarial gain (loss) (balancing
figure)
-40
42
715
Calculate:
(i)
Pension expense to be recognised in profit or loss for the year ended December 31,
2020.
(ii)
Net liabilities to be shown in the Statement of Financial Position as of December
31, 2020

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