The change in year 2 in the net defined benefit liability that arises from the passage of time (interest cost) is Group of answer choices Nil P131 P98 P9 The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is Group of answer choices P131 P98 P89 P196 The amount to be recognized as expense in the second year is Group of answer choices P98 P107 P131 P196
1.
A lump sum benefit is payable on termination of service and equal to 1 per cent of final salary for each year of service. The salary in year 1 is P10,000 and is assumed to increase at 7 per cent (compound) each year. The discount rate used is 10 per cent per year. The entity does not fund its obligation to pay lump-sum benefits. The employee is expected to leave at the end of year 5.
The change in year 2 in the net defined benefit liability that arises from the passage of time (interest cost) is
Group of answer choices
Nil
P131
P98
P9
The increase in the present value of the defined benefit obligation resulting from employee service in year 2 (current service cost) is
Group of answer choices
P131
P98
P89
P196
The amount to be recognized as expense in the second year is
Group of answer choices
P98
P107
P131
P196
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