The following information relates to the defined retirement benefit plan of Integrity Company as of December 31, 2021:Net actuarial gain due to remeasurement of benefit obligation and plan assets taken to OCI - P123,000Prior service cost due to amendment of plan included in retirement benefit expense - P443,000Fair value of plan assets - P2,557,000Accrued benefit obligation - P2,800,000What amount should be shown in the statement of financial position at December 31, 2021 as Prepaid or Accrued Retirement Benefit Cost? a. P243,000 accruedb. P563,000 accruedc. P323,000 prepaidd. P77,000 prepaid

Accrued retirement benefit cost is one of the non current liability reported in the balance sheet of…

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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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The following information relates to the defined retirement benefit plan of Integrity Company as of December 31, 2021:

Net actuarial gain due to remeasurement of benefit obligation and plan assets taken to OCI - P123,000
Prior service cost due to amendment of plan included in retirement benefit expense - P443,000
Fair value of plan assets - P2,557,000
Accrued benefit obligation - P2,800,000

What amount should be shown in the statement of financial position at December 31, 2021 as Prepaid or Accrued Retirement Benefit Cost?

a. P243,000 accrued

b. P563,000 accrued

c. P323,000 prepaid

d. P77,000 prepaid

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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