Determine the amount that will be shown in profit or loss, under PAS19R.
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions…
A: Projected benefit obligation: It is the future benefits' present value that is to be paid to the…
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions…
A: The pension expenses are related to the pension liability. The pension plan are very important…
Q: (Application of Years-of-Service Method) Andrews Company has five employees participating in its…
A:
Q: On January 1 2025 strott company had a projected benefit obligation of 3,000,000. the company…
A: The objective of the question is to calculate the interest on the projected benefit obligation for…
Q: Star Inc. sponsors a defined benefit plan where employees vest 25% after 2 years, 50% after 4 years,…
A: Before solving the question, let us understand the following:- Defined Benefit Obligation - Vested…
Q: .Beall, Inc. has a defined-benefit pension plan covering its 50 employees. Beall agrees to amend its…
A: The retirement benefits primarily consist of the workers' leave encashment (employees are permitted…
Q: On September 1, 2018, Hazel Company offered special termination benefits which consisted of lump sum…
A: Balance sheet shows: Assets accounts Liabilities accounts Shareholder's equity accounts
Q: ABC Corporation is considering a business opportunity that would require an investment of P1,800,000…
A: Bailout Payback Method Investment= P1,800,000 Year Net Cash Flow Salvage Value Cumulative Payback…
Q: Pepsi Cola Company has a define contribution plan that covers its existing employees. The terms of…
A: Accrued Benefit expense refers to the form of welfare provided to employees payable to them at a…
Q: The following information concerns Wildhorse Corp's defined benefit pension plan. Defined benefit…
A: A defined benefit plan is a kind of employee retirement plan in which the benefits are calculated…
Q: Oregon Company's employees are eligible for retirement with benefits at the end of the year in which…
A: Companies provide the retirement options to the employees and companies make provisions for that in…
Q: EIGHT Company has a defined contribution retirement plan that covers its seventy five existing…
A: SOLUTION FORMULA- ANNUAL RETIREMENT BENEFIT EXPENSE= QUARTERLY SALARY * NO OF QUARTER * 7.5%.
Q: Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: M Service Co. reported the following for its defined-benefit pension plan for 2020:…
A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…
Q: ons or estimates were revised during 2024. the estimated return was based on the actual return on…
A: Pension expenditures are associated with the employer's obligation to pay employees' pensions. The…
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions…
A: Service costs represent a significant portion of pension costs. Each full year of employment entails…
Q: Ivanhoe, Inc. has a defined-benefit pension plan covering its 50 employees. Ivanhoe agrees to amend…
A: Number of service years =50+40+30+20+10 = 150
Q: The defined benefit liability (deficit) at the end of the second year is
A:
Q: Accounting Wright Supplies has a defined benefit pension plan for their 750 employees. In 2020, the…
A: employee work in the organisation are paid certain amount of pension in addition to the salary and…
Q: A lump sum b
A: The net outlined profit liability (asset) is that the deficit or surplus, adjusted for any impact of…
Q: In its defined contribution plan, Force Company reported a P100,000 balance on its Prepaid Benefit…
A: Employee Benefit Expense for 2020 = Accrued Benefit Cost as of year end + Prepaid Benefit Cost on…
Q: How much is the retirement benefit expense taken to profit or loss for the year ended December 31,…
A: Employee Benefit expenses will be recognised as it incurred it for current year as principles laid…
Q: Frazier Refrigeration amended its defined benefit pension plan on December 31, 2016, to increase…
A:
Q: Lewis Industries adopted a defined benefit pension plan on January 1, 2016. By making the provisions…
A: Compute the Projected benefit obligation (PBO) as of December 31, 2016.
Q: Roller Co. amends its defined benefit plan decreasing the retirement age from 60 to 58. As a result,…
A: An employer-sponsored retirement plan wherein the company agrees to pay employees a predefined,…
Q: La, Inc. sponsors a defined-benefit pension plan. The following data relates to the operation of the…
A: Computation of the amount of pension expenses reported for 2016 is as follows:
Q: Oregon Company's employees are eligible for retirement with benefits at the end of the year in which…
A: Companies provide the retirement options to the employees and companies make provisions for that in…
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions…
A: A defined benefit pension program is given by the employer to its employees. This plan guarantees…
Q: Please answer in good accounting form. Thankyou 5. Compute for the annual retirement benefit…
A: Here in this question, we are required to calculate how much amount should be reported as annual…
Q: Calculate each of the following amounts as of both December 31, 2021, and December 31, 2022: (Enter…
A: Defined Benefit Pension Plan It is the plan for an employee at the time of retirement where he or…
Q: L Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and…
A: Total past service cost included in pension expense 2016 is : P350,000
Q: 18. Adam Plc sponsor a defined benefit plan for its 120 employees. On January 1, 2019, the company's…
A: Defined Benefit Plan - It is kind of employer driven benefit program which pays the benefits to the…
Q: Oregon Company's employees are eligible for retirement with benefits at the end of the year in which…
A: The Post Retirement Benefit Obligation (PRBO) is a financial term that represents the present value…
Q: DnE Company has established a defined benefit pension ere equal to the employee's highest lifetime…
A: To calculate projected benefit obligation 1st we have to calculate Annual Pension amount. Given…
Q: oriander Co. (CC), a public company, has had a defined benefit pension plan for 30 years. Two years…
A:
Q: The end of Year 1, Carrot Company revised the pension benefit formula for its defined benefit pers…
A: The following will be included in the journal entry to record the change to the pension is: Debit to…
Q: Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement…
A: Solution:-To complete the calculations for Stanley Mills’ pension plan, we’ll continue from where…
Q: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024. The provisions…
A: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2024, with no…
Q: FRANKINCENSE Corporation has a defined contribution retirement plan that covers its seventy- five…
A: Total salary expense for the year 2021 = Average Quarterly salary expense x No. of quarter =…
Q: FRANKINCENSE Corporation has a defined contribution retirement plan that covers its seventy- five…
A: In the defined contribution investment plan, the employer made a certain sum of amount towards the…
10. ABC operates a defined benefit plan which provides for a benefit of 10% of the final salary for each year of service. The benefits will vest after 6 years of service. Beginning of 2017, ABC improves the benefit to 12% of the final salary for every year of service including prior years. On the date of the amendment, the present value of the additional benefits increased as follows:
Employees with more than 6 years of service as of the amendment date 450,550
Employees with less than 6 years of service as of the amendment date
3 years before the vesting period - 330,000
4 years before vesting period - 120,000
Determine the amount that will be shown in profit or loss, under PAS19R.
a. 0
b. 590,550
c. P 295,092
d. 900,550
Step by step
Solved in 3 steps
- Integrity Company was organized way back in 2000. It was in 2016 that the company adopted a defined benefit plan for its employees. After five years of profitable operations, an amendment in its defined benefit plan was effected on January 1, 2021 resulting to increased employee benefits. The records of the company show the following balances on January 1, 2021: Defined benefit obligation - P7,600,000 Plan assets at fair value - P6,200,000 For the year 2021, after considering the actuarial assumptions about demographic variables and financial variables, the following were reported: Current service cost - P560,000 Contributions made to the fund - P1,750,000 Past service cost resulting from the plan amendment - P920,000 Benefits paid - P1,350,000 Discount rate - P8% Actual return on plan assets - P602,000 Actuarial loss on remeasurement of defined benefit obligation at year end - P102,000 How much is the retirement benefit expense taken to profit or loss for the year ended December…Ivanhoe, Inc. has a defined-benefit pension plan covering its 50 employees. Ivanhoe agrees to amend its pension benefits. As a result, the projected benefit obligation increased by $2790000. Ivanhoe determined that all its employees are expected to receive benefits under the plan over the next 5 years. In addition, 10 employees are expected to retire or quit each year. Assuming that Ivanhoe uses the years-of-service method of amortization for prior service cost, the amount reported as amortization of prior service cost in year one after the amendment is $558000. O $651000. $930000. O $186000.D Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers. On January 1, 2016, D will grant employees in Plan 2 additional pension benefits of P240,000 based on their past service. Employees in this plan have an average period to vesting of 8 years. Plan 1 will be amended to reduce benefits by P120,000 (in exchange, employees will receive increased contributions to the company’s defined contribution plan). Employees in this plan have an average period to vesting of 6 years. What is the total past service cost included in pension expense 2016?
- Frazier Refrigeration amended its defined benefit pension plan on December 31, 2018, to increase retirement benefits earned with each service year. The consulting actuary estimated the prior service cost incurred by making theamendment retroactive to prior years to be $110,000. Frazier’s 100 present employees are expected to retire at therate of approximately 10 each year at the end of each of the next 10 years.Required:1. Using the service method, calculate the amount of prior service cost to be amortized to pension expense ineach of the next 10 years.2. Using the straight-line method, calculate the amount of prior service cost to be amortized to pension expensein each of the next 10 years.The actuary for the pension plan of Indigo Inc. calculated the following net gains and losses. Incurred during the Year 2020 2021 2022 2023 As of January 1, Other information about the company's pension obligation and plan assets is as follows. 2020 2021 2022 (Gain) or Loss $302,200 476,600 2023 (210,400) (291,300) Projected Benefit Obligation $4,029,300 4,515,400 5,019,900 4,255,600 Plan Assets (market-related asset value) $2,423,700 2,180,800 2,580,100 3,067,900 Indigo Inc. has a stable labor force of 400 employees who are expected to receive benefits under the plan. The total service-years for all participating employees is 4,400. The beginning balance of accumulated OCI (G/L) is zero on January 1, 2020. The market-related value and the fair value of plan assets are the same for the 4-year period. Use the average remaining service life per employee as the basis for amortization. Compute the minimum amount of accumulated OCI (G/L) amortized as a component of net periodic pension…arasota Company has five employees participating in its defined benefit pension plan. Expected years of future service for these employees at the beginning of 2020 are as follows. Employee Future Years of Service Jim 3 Paul 4 Nancy 5 Dave 6 Kathy 6 On January 1, 2020, the company amended its pension plan, increasing its projected benefit obligation by $74,880.Compute the amount of prior service cost amortization for the years 2020 through 2025 using the years-of-service method, setting up appropriate schedules. Year Annual Amortization 2020 $enter a dollar amount 2021 enter a dollar amount 2022 enter a dollar amount 2023 enter a dollar amount 2024 enter a dollar amount 2025 enter a dollar amount
- On December 31, 2020, Stormy & Co. started a defined benefit plan for its president. The plan provides for an annual pension to the executive, equal to 2% of the executive’s highest lifetime salary multiplied by number of years of service within the entity. On date of establishment, the president already has worked for ten years, and his current salary as of this date is P500,000. The president is expected to retire in 25 years, and his/her salary is expected to increase by 3% on average. He/she is also estimated to have a life expectancy of 15 years after retirement and will receive his/her annual pension at the end of each year after retirement. Market yield of high-quality corporate bonds is 8%. Below is the relevant PV and Future Value (FV) factors:· Future value of 1 at 3% for 25 periods: 2.094· PV of an ordinary annuity at 8% for 15 periods: 8.559· PV of 1 at 8% for 25 periods: 0.146How much is the projected benefit obligation upon establishment of the…KmuIntegrity Company was organized way back in 2000. It was in 2016 that the company adopted a defined benefit plan for its employees. After five years of profitable operations, an amendment in its defined benefit plan was effected on January 1, 2021 resulting to increased employee benefits. The records of the company show the following balances on January 1, 2021: Defined benefit obligation - P7,600,000 Plan assets at fair value - P6,200,000 For the year 2021, after considering the actuarial assumptions about demographic variables and financial variables, the following were reported: Current service cost - P560,000 Contributions made to the fund - P1,750,000 Past service cost resulting from the plan amendment - P920,000 Benefits paid - P1,350,000 Discount rate - P8% Actual return on plan assets - P602,000 Actuarial loss on remeasurement of defined benefit obligation at year end - P102,000 How much is the retirement benefit expense taken to profit or loss for the year ended December…
