Mota Corporation maintains a tax-qualified, funded, noncontributory defined benefit retirement plan covering substantially all of its permanent employees. The benefits are based on years of service and compensation during the latest year of employment. A retirement valuation was made as at each financial yearend. The defined benefit retirement plan meets the minimum retirement benefit specified under Republic Act (RA) No. 7641, Retirement Pay Law.The following information has been provided to you in relation to your financial statement disclosure review of Nishida Corporation: Based on the information above, answer the following:What is the balance of the net retirement liability (asset) on December 31, 2019?What is the retirement expense in the income statement for the year ended December 31, 2020?What is the remeasurement loss (gain) in other comprehensive income for the year ended December 31, 2020 in relation to its defined benefit plan? At Jan. 1, 2020At Jan. 1, 2019Present value of defined benefit obligationP46,706,621Fair value of plan assets54,017,675Asset ceilingP18,101,4118,911,552Discount rate7.70%5.79%For the year ended Dec. For the year ended Dec.31, 202031, 2019Benefits paidP 6,542,451P 2,951,564Contributions17,088,72313,802,258Current service cost7,259,8076,619,115Actual return10,798,916(1,726,309)Increase (decrease) in the present value of defined benefitobligation due to actuarial changes arising from:Changes in financial assumptions26,796,261|(14,371,762)|Changes in demographic assumptions268,324Experience adjustment351,8333,745,584At Dec. 31, 2020At Dec. 31, 2019Asset ceilingP9,339,209P18,101,411Discount rate5.52%7.70%

Net defined benefit liability denotes the deficit or surplus between the defined benefit obligations…

Answered: Mota Corporation maintains a…

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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Mota Corporation maintains a tax-qualified, funded, noncontributory defined benefit retirement plan covering substantially all of its permanent employees. The benefits are based on years of service and compensation during the latest year of employment. A retirement valuation was made as at each financial yearend. The defined benefit retirement plan meets the minimum retirement benefit specified under Republic Act (RA) No. 7641, Retirement Pay Law.

The following information has been provided to you in relation to your financial statement disclosure review of Nishida Corporation:

Based on the information above, answer the following:

What is the balance of the net retirement liability (asset) on December 31, 2019?
What is the retirement expense in the income statement for the year ended December 31, 2020?
What is the remeasurement loss (gain) in other comprehensive income for the year ended December 31, 2020 in relation to its defined benefit plan?