Answered: Prepare a pension worksheet for the…

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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Caroni Ltd has a defined benefit pension plan for its employees. In 2016, the following actuarial report was received for the defined benefit plan: 2016/$ Present value of the defined benefit obligation 31 December 2015 10 000 000 Net interest ? Current service cost 1 150 000 Benefits paid 1 200 000 Actuarial gain/loss on DBO ? Present value of the defined benefit obligation 31 December 2016 10 750 000 Fair value of plan assets at 31 December 2015 9 500 000 Return on plan assets ? Contributions paid to the plan during the year 1 000 000 Benefits paid by the plan during the year 1 200 000 Fair value of plan assets at 31 December 2016 10 047 500 Additional information (a) All contributions received by the plan were paid by Caroni Ltd. (b) The interest rate used to measure the present value of the defined benefit obligation was 9% at 31 December 2015 and 31 December 2016. (c) The asset ceiling was nil at 31 December 2015 and 31 December 2016. Requirement: Prepare a pension worksheet for the period ended December 31 2016 ( using the attached format)

12:38 am Thu 4 Apr
Pension Worksheet (Group)_fa5a8835385c9691209695474ebd1d52
Pension Plan
Company records
Defined Benefit
Obligation Plan Assets
(DBO)
Net defined
benefit balance
Cash
Annual pension
expense
OCI
9%
Done

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