Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with thefollowing beginning balances:Fair Value of Plan Assets are Php 200,000.00Defined Benefit Obligation is Php is 250,000.00The following are other information relating to the years 2021, 2022, and 2023:202320222021Current service costP26,000.00P 19,000.00P 16,000.00Discount rate10%10%10%Actual return on plan assetsContributions to the plan24,000.0048,000.0022,000.0040,000.0020,000.0016,000.0014,000.00Benefits paid to retiree21,000.0016,400.00Other information:1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php160,000.002. On December 31, 2023, there were changes in the actuarial assumptions that establishes adefined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00.Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and theactivities of the pension. Indicate in the worksheet whether the amount is a Debit/Debited (Dr) or aCredit/Credited (Cr)

Introduction The phrase actual service cost refers to the increase in a pension scheme obligation's…

Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree Other information: 2023 2022 P 19,000.00 P26,000.00 10% 10% 24,000.00 22,000.00 48,000.00 40,000.00 21,000.00 16,400.00 2021 P 16,000.00 10% 20,000.00 16,000.00 14,000.00 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the pension. Indicate in the worksheet whether the amount is a Debit/Debited (Dr) or a Credit/Credited (Cr)

Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with the following beginning balances: Fair Value of Plan Assets are Php 200,000.00 Defined Benefit Obligation is Php is 250,000.00 The following are other information relating to the years 2021, 2022, and 2023: Current service cost Discount rate Actual return on plan assets Contributions to the plan Benefits paid to retiree Other information: 2023 2022 P 19,000.00 P26,000.00 10% 10% 24,000.00 22,000.00 48,000.00 40,000.00 21,000.00 16,400.00 2021 P 16,000.00 10% 20,000.00 16,000.00 14,000.00 1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php 160,000.00 2. On December 31, 2023, there were changes in the actuarial assumptions that establishes a defined benefit obligation as of December 31, 2023 in the amount of Php 520,000.00. Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances and the activities of the pension. Indicate in the worksheet whether the amount is a Debit/Debited (Dr) or a Credit/Credited (Cr)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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