How much is the balance of the defined benefit obligation at December 31,2020?How much is the surplus or deficit related to retirement benefits that will be shown on December 31,2020 statement of financial position? How much is the defined benefit cost taken to other comprehensive income for the year 2020? The memorandum records of ABC Company at January 1,2020 show the following:Defined Benefit ObligationP 2,600,000Fair value of Plan Assets3,000,000The following information for 2020 is also provided:Service costP 800,000Discount rate9%Actual return on plan assetsBenefits paidContributions to the plan300,000350,000780,000Actuarial loss on remeasurement ofDefined Benefit Obligation100,000

Defined Benefit Plan:- This is the plan provided to employees by companies for their benefit at…

Answered: The memorandum records of ABC Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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How much is the balance of the defined benefit obligation at December 31,2020?
How much is the surplus or deficit related to retirement benefits that will be shown on December 31,2020 statement of financial position?
How much is the defined benefit cost taken to other comprehensive income for the year 2020?

The memorandum records of ABC Company at January 1,2020 show the following:
Defined Benefit Obligation
P 2,600,000
Fair value of Plan Assets
3,000,000
The following information for 2020 is also provided:
Service cost
P 800,000
Discount rate
9%
Actual return on plan assets
Benefits paid
Contributions to the plan
300,000
350,000
780,000
Actuarial loss on remeasurement of
Defined Benefit Obligation
100,000

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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