What is your best approximation of the net pension expenses recorded in P&L related to defined benefit plans in fiscal year 2021? a. £6,950 b. £6,600 c. £6,250 d. £8,150 e. None of the above

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 4E
icon
Related questions
Question
10. Newton Inc offers its employees a defined benefit pension plan. Newton Inc reports under US GAAP. It records
actuarial gains and losses in Other Comprehensive Income (OCI) and amortizes these amounts over the
average remaining service life of its employees when they exceed a threshold. Newton Inc did not record any
past service cost in fiscal year 2021.
Below you can find excerpts from Newton's pension footnotes:
4+1
f
Service cost
Interest cost
Expected return on plan assets
Actual return on plan assets
Contributions to defined benefits plan
Benefits paid
Pension liability
Accumulated OCI losses related to defined benefit plans
a. £6,950
b. £6,600
c. £6,250
d. £8,150
e. None of the above
2020
£3,300
£1,600
£2,100
£1,900
£2,000
£1,250
What is your best approximation of the net pension expenses recorded in P&L related to defined benefit plans
in fiscal year 2021?
ANSWER: C
£35,000
£4,500
2021
£3,500
£1,750
£1,900
£2,000
£2,100
£1,350
£42,500
£5,100
Transcribed Image Text:10. Newton Inc offers its employees a defined benefit pension plan. Newton Inc reports under US GAAP. It records actuarial gains and losses in Other Comprehensive Income (OCI) and amortizes these amounts over the average remaining service life of its employees when they exceed a threshold. Newton Inc did not record any past service cost in fiscal year 2021. Below you can find excerpts from Newton's pension footnotes: 4+1 f Service cost Interest cost Expected return on plan assets Actual return on plan assets Contributions to defined benefits plan Benefits paid Pension liability Accumulated OCI losses related to defined benefit plans a. £6,950 b. £6,600 c. £6,250 d. £8,150 e. None of the above 2020 £3,300 £1,600 £2,100 £1,900 £2,000 £1,250 What is your best approximation of the net pension expenses recorded in P&L related to defined benefit plans in fiscal year 2021? ANSWER: C £35,000 £4,500 2021 £3,500 £1,750 £1,900 £2,000 £2,100 £1,350 £42,500 £5,100
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Accounting for Employee Compensations and Benefits
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
SWFT Individual Income Taxes
SWFT Individual Income Taxes
Accounting
ISBN:
9780357391365
Author:
YOUNG
Publisher:
Cengage