Determine the employee benefit expense for the current year.
E. Charlton Company provided the following information concerning a defined benefit plan at the beginning of
current year prior to the adoption of revised PAS 19:
Debit Credit
Fair value of plan assets 4,750,000
Unamortized past service cost 1,250,000
Projected benefit obligation 5,500,000
Unrecognized actuarial gain 850,000
The transactions for the current year relating to the defined benefit plan are as follows:
Current service cost 925,000
Discount
Actual return
Contribution to the plan 1,350,000
Benefits paid to retirees 995,000
Increase in projected benefit obligation due to changes in actuarial assumptions 150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
REQUIRED:
16. Determine the employee benefit expense for the current year.
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