Prepare journal entry to recognize the transitional effect of adopting revised PAS 19, determine the employee benefit expense for the current year, remeasurement related to the defined benefit plan
Prepare journal entry to recognize the transitional effect of adopting revised PAS 19, determine the employee benefit expense for the current year, remeasurement related to the defined benefit plan
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare
![E. Charlton Company provided the following information concerning a defined benefit plan at the beginning of
current year prior to the adoption of revised PAS 19:
Debit
Credit
Fair value of plan assets
Unamortized past service cost
Projected benefit obligation
Unrecognized actuarial gain
4,750,000
1,250,000
5,500,000
850,000
The transactions for the current year relating to the defined benefit plan are
follows:
Current service cost
925,000
Discount rate
6%
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
Increase in projected benefit obligation due to changes in actuarial assumptions
485,000
1,350,000
995,000
150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9d4df042-baa4-4489-8989-f24d1af02573%2Fa0167e4a-bf99-426e-9728-3b858908281f%2Fdy5bjgb_processed.png&w=3840&q=75)
Transcribed Image Text:E. Charlton Company provided the following information concerning a defined benefit plan at the beginning of
current year prior to the adoption of revised PAS 19:
Debit
Credit
Fair value of plan assets
Unamortized past service cost
Projected benefit obligation
Unrecognized actuarial gain
4,750,000
1,250,000
5,500,000
850,000
The transactions for the current year relating to the defined benefit plan are
follows:
Current service cost
925,000
Discount rate
6%
Actual return on plan assets
Contribution to the plan
Benefits paid to retirees
Increase in projected benefit obligation due to changes in actuarial assumptions
485,000
1,350,000
995,000
150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
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