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: Fair value of plan assets Unamortized past service cost Projected benefit obligation Unrecognized actuarial gain Debit 4,750,000 1,250,000 The transactions for the current year relating to the defined benefit plan are as follows: Credit 5,500,000 850,000 Current service cost Discount rate 925,000 6% Actual return on plan assets 485,000 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.
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: Fair value of plan assets Unamortized past service cost Projected benefit obligation Unrecognized actuarial gain Debit 4,750,000 1,250,000 The transactions for the current year relating to the defined benefit plan are as follows: Credit 5,500,000 850,000 Current service cost Discount rate 925,000 6% Actual return on plan assets 485,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Unamortized past service cost
Projected benefit obligation
Unrecognized actuarial gain
4,750,000
1,250,000
5,500,000
850,000
The transactions for the current year relating to the defined benefit plan are as follows:
Current service cost
925,000
Discount rate
6%
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
Increase in projected benefit obligation due to changes in actuarial assumptions
485,000
1,350,000
995,000
150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
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