Question textNet interest cost is a component of pensionexpense under IFRS. How is net interest costcalculated?Select one:а.Interest expense on the defined benefitobligation (DBO), net of expected interestincome earned on plan assets.b.The increase in the DBO over the period, netof the increase in the plan assets over theperiod.С.Interest expense on the DBO, net of actualinterest income earned on plan assets.d.The increase in the DBO over the period, netof the increase in the plan assets over theperiod. Question textGreat Cosmetics Corp., a company reporting under IFRS,has a defined benefit pension plan. Pension informationconcerning the 2019 and 2020 fiscal years is presentedbelow (in millions):Information provided by the pension plan actuaryDefined benefit obligation (DBO),$2,000December 31, 2019Past service cost (PSC) from a plan400amendment made January 2, 2020Current service cost (CSC) for 20205202020 interest cost on DBO, based on 10%180discount rate2020 actuarial gain on DBO arising from a250change in estimateBenefits paidFunding for the yearInformation provided by the pension plan trusteeFair value of plan assets, January 1, 2020$1,800Actual return on plan assets180What is the net defined benefit liability/asset balanceon the balance sheet at January 1, 2020?Select one:а.$200 net defined benefit liability.b.$200 net defined benefit asset.C.$2,000 net defined benefit liability.d.$3,800 net defined benefit asset.

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Question text Net interest cost is a component of pension expense under IFRS. How is net interest cost calculated? Select one: а. Interest expense on the defined benefit obligation (DBO), net of expected interest income earned on plan assets. b. The increase in the DBO over the period, net of the increase in the plan assets over the period. С. Interest expense on the DB0, net of actual interest income earned on plan assets. d. The increase in the DBO over the period, net of the increase in the plan assets over the period.

Question text Net interest cost is a component of pension expense under IFRS. How is net interest cost calculated? Select one: а. Interest expense on the defined benefit obligation (DBO), net of expected interest income earned on plan assets. b. The increase in the DBO over the period, net of the increase in the plan assets over the period. С. Interest expense on the DB0, net of actual interest income earned on plan assets. d. The increase in the DBO over the period, net of the increase in the plan assets over the period.

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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Question 13 Pension expense is decreased by: A- Amortization of prior service cost. B- Amortization of net gain. C- Benefits paid to retired employees. D- Prior service cost. O A O B O D
The following information relates to the pension plan for the employees of Cullumber Co.: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) O $665200 gain. O $282200 loss. 1/1/20 $110600 gain. $272400 gain. $8140000 8665000 7825000 -0- $ 12/31/20 8560000 9358000 9820000 (1402000 ) 11% 8% 12/31/21 $ 11500000 12907000 10954000 (1570000 ) 11% Cullumber estimates that the average remaining service life is 16 years. Cullumber's contribution was $1213000 in 2021 and benefits paid were $877000. The unexpected gain or loss on plan assets in 2021 is 7%
The following information relates to the pension plan for the employees of Blossom Company: Accum. benefit obligation Projected benefit obligation Fair value of plan assets AOCI - net (gain) or loss Settlement rate (for year) Expected rate of return (for year) 1/1/25 $7940000 8465000 7625000 O $26250. O $17456. O $20238. O $14188. 0 12/31/25 $8360000 9158000 9620000 (1382000) 11% 8% 12/31/26 $11300000 12707000 10754000 (1550000) 11% 7% Blossom estimates that the average remaining service life is 16 years. Blossom's contribution was $1323000 in 2026 and benefits paid were $987000. The amount of AOCI (net gain) amortized in 2026 is
Any past service costs should be included in the a) pension expense of past periods. b) pension expense of the current period. c) pension expense of current and future periods. d) plan assets.
Th e relationship between the periodic pension cost and the plan’s funded status is bestexpressed in which of the following?A . Periodic pension cost of –£483 = Ending funded status of –£4,774 – Employer contributions of £693 – Beginning funded status of –£4,984.B . Periodic pension cost of £1,322 = Benefi ts paid of £1,322.C . Periodic pension cost of £210 = Ending funded status of –£4,774 – Beginning fundedstatus of –£4,984
A company that sponsors a defined benefit plan records an entry to debit OCI-Pension Gain/Loss for $5,000 and credit Plan Assets. The company uses the corridor approach to amortize Accumulated OCI-Pension Gain/Loss. This entry indicates that Select one: O a. The expected return on plan assets exceeded actual return on plan assets. O b. The actual return on plan assets exceeded the expected return on plan assets. O c. The beginning balance in Accumulated OCI-Pension Gain/Loss exceeded the corridor. O d. The beginning balance in Accumulated OCI-Pension Gain/Loss did not exceed the corridor. e. a and c f. b and d OO
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Question 14 what give rises to the changes in PBO balance? A- service cost and interest cost B- prior service cost that is caused by a change in pension formula C- changes in life expectancy estimates D- all of the above O A O C OD
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