Moreton Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June 2020. Fair value of plan assets (1/7/2019) Return on plan assets Fair value of plan assets (30/6/2020) Present value of defined benefit obligation (1/7/2019) Present value of defined benefit obligation (30/6/2020) Benefits paid $10 484 000 $733 880 $10 948 000 $10 244 120 $10 654 000 $324 000 The rate of return on plan assets for the financial period is 7% and the discount rate at 1 July 2019 is 6%. REQUIRED: Select the most appropriate accounting treatments and amounts for two following statements. • At 30 June 2020, the net defined benefit is a(n) v with a balance of • For the financial year ended on 30 June 2020, Moreton Ltd should recognise an actuarial v on the plan assets at an amount of

Moreton Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June 2020. Fair value of plan assets (1/7/2019) Return on plan assets Fair value of plan assets (30/6/2020) Present value of defined benefit obligation (1/7/2019) Present value of defined benefit obligation (30/6/2020) Benefits paid $10 484 000 $733 880 $10 948 000 $10 244 120 $10 654 000 $324 000 The rate of return on plan assets for the financial period is 7% and the discount rate at 1 July 2019 is 6%. REQUIRED: Select the most appropriate accounting treatments and amounts for two following statements. • At 30 June 2020, the net defined benefit is a(n) v with a balance of • For the financial year ended on 30 June 2020, Moreton Ltd should recognise an actuarial v on the plan assets at an amount of

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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Concept explainers

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.

Question

Moreton Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June
2020.
Fair value of plan assets (1/7/2019)
Return on plan assets
Fair value of plan assets (30/6/2020)
Present value of defined benefit obligation (1/7/2019)
Present value of defined benefit obligation (30/6/2020)
Benefits paid
$10 484 000
$733 880
$10 948 000
$10 244 120
$10 654 000
$324 000
The rate of return on plan assets for the financial period is 7% and the discount rate at 1 July 2019 is 6%.
REQUIRED:
Select the most appropriate accounting treatments and amounts for two following statements.
• At 30 June 2020, the net defined benefit is a(n)
v with a balance of
• For the financial year ended on 30 June 2020, Moreton Ltd should recognise an actuarial
v on the plan assets at an amount of

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