On December 31, 2020, ABC Company had the following balances in its memorandum records related to its defined benefit plan: • Fair value of plan assets- P10,000,000 · Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows: Current service cost- P2,000,000 Past service cost- P1,300,000 Actual return on plan assets- P1,500,000 Actuarial gain on benefit obligation- P400,000 Actuarial gain on plan assets- P500,000 Present value of benefits settled- P900,000 Settlement price- P800,000 Contribution to the plan- P3,100,000 Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
On December 31, 2020, ABC Company had the following balances in its memorandum records related to its defined benefit plan: • Fair value of plan assets- P10,000,000 · Benefit obligation- P12,000,000 Other relevant information relating to the plan for 2021 follows: Current service cost- P2,000,000 Past service cost- P1,300,000 Actual return on plan assets- P1,500,000 Actuarial gain on benefit obligation- P400,000 Actuarial gain on plan assets- P500,000 Present value of benefits settled- P900,000 Settlement price- P800,000 Contribution to the plan- P3,100,000 Discount rate- 12% How much is the employee benefit expense taken to profit or loss during 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On December 31, 2020, ABC Company had the following balances in its memorandum records
related to its defined benefit plan:
Fair value of plan assets- P10,000,000
Benefit obligation- P12,000,000
Other relevant information relating to the plan for 2021 follows:
Current service cost- P2,000,000
Past service cost- P1,300,000
Actual return on plan assets- P1,500,000
Actuarial gain on benefit obligation- P400,000
Actuarial gain on plan assets- P500,000
Present value of benefits settled- P900,000
Settlement price- P800,000
Contribution to the plan- P3,100,000
Discount rate- 12%
How much is the employee benefit expense taken to profit or loss during 2021?
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