Jessie Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 P10,000,000 Fair value of plan assets, 1/1 9,000,000 Current service cost 3,000,000 Gain on settlement 500,000 Actual return on plan assets 630,000 Increase in defined benefit obligation due to changes in actuarial assumptions 800,000 Market yield on high quality corporate bonds 6% Yield on bonds issued by the entity 8% Expected return on plan assets 9% Calculate the amount that the entity would recognize in other comprehensive income for the year in accordance with the revised PAS 19
Jessie Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 P10,000,000 Fair value of plan assets, 1/1 9,000,000 Current service cost 3,000,000 Gain on settlement 500,000 Actual return on plan assets 630,000 Increase in defined benefit obligation due to changes in actuarial assumptions 800,000 Market yield on high quality corporate bonds 6% Yield on bonds issued by the entity 8% Expected return on plan assets 9% Calculate the amount that the entity would recognize in other comprehensive income for the year in accordance with the revised PAS 19
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Jessie Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated:
|
Defined benefit obligation, 1/1 |
P10,000,000 |
|
Fair value of plan assets, 1/1 |
9,000,000 |
|
Current service cost |
3,000,000 |
|
Gain on settlement |
500,000 |
|
Actual return on plan assets |
630,000 |
|
Increase in defined benefit obligation due to changes in actuarial assumptions |
800,000 |
|
Market yield on high quality corporate bonds |
6% |
|
Yield on bonds issued by the entity |
8% |
|
Expected return on plan assets |
9% |
Calculate the amount that the entity would recognize in other comprehensive income for the year in accordance with the revised PAS 19
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