The following data were obtained from the actuarial valuation reports of Sight Company on January 1, 2002: Actuarial accrued liability Actuarial value of plan assets Current service cost for 2002 P5,000,000 4,600,000 500,000 300,000 450,000 10% Experience adjustment gain Contribution to the plan in 2002 Interest on unfunded actuarial liability Remaining working lives of employees 15 years

The following data were obtained from the actuarial valuation reports of Sight Company on January 1, 2002: Actuarial accrued liability Actuarial value of plan assets Current service cost for 2002 P5,000,000 4,600,000 500,000 300,000 450,000 10% Experience adjustment gain Contribution to the plan in 2002 Interest on unfunded actuarial liability Remaining working lives of employees 15 years

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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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

What is the retirement benefits expenses for the year ended December 31, 2002?

(a) P450,000

(b) P520,000

(d) P480,000

The following data were obtained from the actuarial valuation reports of Sight Company on
January 1, 2002:
Actuarial accrued liability
Actuarial value of plan assets
Current service cost for 2002
Experience adjustment gain
Contribution to the plan in 2002
Interest on unfunded actuarial liability
Remaining working lives of employees
P5,000,000
4,600,000
500,000
300,000
450,000
10%
15 years

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Subject: acounting