Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated: Defined benefit obligation, 1/1 P11,250,000 Fair value of plan assets, 1/1 10,500,000 Current service cost 1,050,000 Past service cost 2,200,000 Actual return on plan assets 600,000 Decrease in defined benefit obligation due to changes in actuarial assumptions 300,000 Discount rate 8% Requirements: 1. In the working papers computations, what balance of plan assets will be determined? 2. In the working papers computations, what balance of benefit obligation will be determined? 3. Calculate the amount that the entity would recognize in profit or loss for the year in accordance with the revised PAS 19. 4. Calculate the amount that the entity would recognize in other comprehensive income for the year in accordance with the revised PAS 19.
Rosaria Co. sponsors a defined benefit pension plan. For the current year ended December 31, the
following information relevant to the plan has been accumulated:
Defined benefit obligation, 1/1 P11,250,000
Fair value of plan assets, 1/1 10,500,000
Current service cost 1,050,000
Past service cost 2,200,000
Actual return on plan assets 600,000
Decrease in defined benefit obligation due to
changes in actuarial assumptions
300,000
Discount rate 8%
Requirements:
1. In the working papers computations, what balance of plan assets will be determined?
2. In the working papers computations, what balance of benefit obligation will be determined?
3. Calculate the amount that the entity would recognize in profit or loss for the year in accordance
with the revised PAS 19.
4. Calculate the amount that the entity would recognize in other comprehensive income for the
year in accordance with the revised PAS 19.
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