Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 earnings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 20X8 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined 5,255,000 4,816,000 439,000 cr. 68,400 dr. 8,625,400 cr. 4,200,000 cr. 604,300 (346,000) 440,000 (114,000) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 146,400 Benefits paid to pensioners from Pension fund assets paid at end of 20X8 Interest rate on long-term corporate bonds, end of 20X8 70,300 5% Required: Prepare the accounting for the defined benefit plan, using the spreadsheet approach.
Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to the plan: Balances: Defined benefit obligation, end of 20X7 Pension plan assets, fair value, end of 20x7 SFP net defined benefit liability, end of 20X7 SFP accumulated OCI, pension, end of 20X7 Retained earnings, end of 20X7 20X8 earnings, prior to any pension expense Current service cost for 20X8, measured using the projected unit credit method New past service cost granted in 20X8, negative because benefits were reduced and the liability has declined Contributions made to the pension plan assets paid at end of 20X8 Actuarial gain in 20X8, negative because caused by higher anticipated future mortality rates and the liability has declined 5,255,000 4,816,000 439,000 cr. 68,400 dr. 8,625,400 cr. 4,200,000 cr. 604,300 (346,000) 440,000 (114,000) Actual earnings in the fund, reported by the pension fund trustee, including interest, dividends, and change in fair value 146,400 Benefits paid to pensioners from Pension fund assets paid at end of 20X8 Interest rate on long-term corporate bonds, end of 20X8 70,300 5% Required: Prepare the accounting for the defined benefit plan, using the spreadsheet approach.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Goodday Ltd., a public company, has a defined benefit pension plan and a 31 December year-end. The following information relates to
the plan:
Balances:
Defined benefit obligation, end of 20X7
Pension plan assets, fair value, end of 20x7
SFP net defined benefit liability, end of 20X7
SFP accumulated OCI, pension, end of 20X7
Retained earnings, end of 20X7
20X8 earnings, prior to any pension expense
Current service cost for 20X8, measured using the projected
unit credit method
New past service cost granted in 20X8, negative because
benefits were reduced and the liability has declined
Contributions made to the pension plan assets paid at end of
20X8
Actuarial gain in 20X8, negative because caused by higher
anticipated future mortality rates and the liability has
declined
5,255,000
4,816,000
439,000 cr.
68,400 dr.
8,625,400 cr.
4,200,000 cr.
604,300
(346,000)
440,000
(114,000)
Actual earnings in the fund, reported by the pension fund
trustee, including interest, dividends, and change in fair
value
146,400
Benefits paid to pensioners from Pension fund assets paid at
end of 20X8
Interest rate on long-term corporate bonds, end of 20X8
70,300
5%
Required:
Prepare the accounting for the defined benefit plan, using the spreadsheet approach.
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