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 rate 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. REQUIRED: 15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19. 16. Determine the employee benefit expense for the current year. 17. Compute the remeasurement related to the defined benefit plan. 18. Prepare journal entry to record the employee benefit expense. 19. Compute for the Fair Value Plan Asset (FVPA) as of December 31. 20. Compute for the projected benefit obligation on December 31.
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 rate 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.
REQUIRED:
15. Prepare
16. Determine the employee benefit expense for the current year.
17. Compute the remeasurement related to the defined benefit plan.
18. Prepare journal entry to record the employee benefit expense.
19. Compute for the Fair Value Plan Asset (FVPA) as of December 31.
20. Compute for the projected benefit obligation on December 31.
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