Pension Worksheet Guidelines Pension Work Sheet GENERAL ENTRIES JOURNAL MEMO RECORD Annual Pension Pension Defined OCI- Asset/ Benefit Plan Items Expense Cash Gain/Loss Liability Obligation Assets
FlagStaff Ltd has a defined benefit pension plan for its employees. The company is
considering introducing a defined benefit contribution plan, which will be available to
all incoming staff. Although the defined benefit plan is now closed to new staff, the
fund is active for all employees who have tenure with the company. In 2020, the
following actuarial report was received for the defined benefit plan:
2020/$
Present value of the defined benefit obligation 31 December 2019 18 000 000
Past Service Cost 4 000 000
Net interest ?
Current service cost 600 000
Benefits paid 2 000 000
Actuarial gain/loss on DBO ?
Present value of the defined benefit obligation 31 December 2020 21 000 000
Fair value of plan assets at 31 December 2019 17 000 000
Return on plan assets ?
Contributions paid to the plan during the year 1 500 000
Benefits paid by the plan during the year 2 000 000
Fair value of plan assets at 31 December 2020 27 500 000
Additional information
All contributions received by the plan were paid by Flagstaff Ltd.
The interest rate used to measure the present value of the defined benefit
obligation was 9% at 31 December 2019 and 31 December 2020.
The asset ceiling was nil at 31 December 2019 and 31 December 2020.
Calculate the actuarial gain or loss for the defined benefit obligation for 2020
Calculate the return on plan assets, excluding any amount recognized in net interest for
2020
Complete the attached table with the info above
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