On January 1, 2022, Seismic Slam Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,400,000. Other related to the retirement benefit plan for 2022 are as follows: Current service cost 200,000 Past service cost 150,000 Contribution to the plan 204,000 Benefits paid 200,000 Discount rate 8% Actual return on plan asset 285,000 Decrease in defined benefit obligation as a result of remeasurement 25,000 What amount of defined benefit cost should be reported in profit or loss?
On January 1, 2022, Seismic Slam Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,400,000. Other related to the retirement benefit plan for 2022 are as follows: Current service cost 200,000 Past service cost 150,000 Contribution to the plan 204,000 Benefits paid 200,000 Discount rate 8% Actual return on plan asset 285,000 Decrease in defined benefit obligation as a result of remeasurement 25,000 What amount of defined benefit cost should be reported in profit or loss?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2022, Seismic Slam Company had the following balances in its memorandum records: Fair value of plan assets P3,000,000; Defined benefit obligation P3,400,000. Other related to the retirement benefit plan for 2022 are as follows:
Current service cost |
200,000 |
Past service cost |
150,000 |
Contribution to the plan |
204,000 |
Benefits paid |
200,000 |
Discount rate |
8% |
Actual return on plan asset |
285,000 |
Decrease in defined benefit obligation as a result of remeasurement |
25,000 |
What amount of defined benefit cost should be reported in profit or loss?
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