Skywalker Inc. is a publicly traded company that follows IFRS. On November 30, 2019, Skywalker's accounting records included the following information: Defined benefit obligation $ 1,408,599 Pension plan assets $ 1,531,086 Skywalker's actuary provided the following information about its defined benefit pension plan for the year ended November 30, 2020: Current year service cost $ 84,516 Prior service cost, granted December 1, 2019 $ 169,032 Employer contributions for the year $ 91,865 Benefits paid to retirees $ 28,172 Expected return on assets 6% Actual return on assets 7% Discount rate 6% Defined benefit obligation at November 30, 2020 $ 1,725,036 Required: a) Prepare a pension worksheet for Skywalker's pension plan for the year ended November 30, 2020. b) Prepare the journal entries required by Skywalker for the pension plan in 2020. c) Determine the funded status of the plan.
Defined Benefit Pension Plan
Skywalker Inc. is a publicly traded company that follows IFRS. On November 30, 2019, Skywalker's accounting records included the following information:
|
Defined benefit obligation |
$ 1,408,599 |
||
|
Pension plan assets |
$ 1,531,086 |
|
Skywalker's actuary provided the following information about its defined benefit pension plan for the year ended November 30, 2020: |
|
|
Current year service cost |
$ 84,516 |
|
Prior service cost, granted December 1, 2019 |
$ 169,032 |
|
Employer contributions for the year |
$ 91,865 |
|
Benefits paid to retirees |
$ 28,172 |
|
Expected return on assets |
6% |
|
Actual return on assets |
7% |
|
Discount rate |
6% |
|
Defined benefit obligation at November 30, 2020 |
$ 1,725,036 |
|
Required: |
|
a) |
|
Prepare a pension worksheet for Skywalker's pension plan for the year ended November 30, 2020. |
|
b) |
Prepare the |
|
c) |
Determine the funded status of the plan. |
|
d) |
Prepare the necessary journal entries for the pension for 2020 if Skywalker followed ASPE instead. A pension worksheet is not required. |
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