L Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers. On January 1, 2016, L will grant employees in Plan 2 additional pension benefits of P318,000 based on their past service. Employees in this plan have
L Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers. On January 1, 2016, L will grant employees in Plan 2 additional pension benefits of P318,000 based on their past service. Employees in this plan have
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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L Company is evaluating amendments to its pensions plans. Plan 1 covers its salaried employees and Plan 2 provides benefits to its hourly workers. On January 1, 2016, L will grant employees in Plan 2 additional pension benefits of P318,000 based on their past service. Employees in this plan have an average period to vesting of 6 years. Plan 1 will be amended to reduce benefits by P160,000 (in exchange, employees will receive increased contributions to the company’s defined contribution plan). Employees in this plan have an average period to vesting of 5 years. What is the total past service cost included in pension expense 2016?
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