Ultimate Company provided the following information in relation to a defined benefit plan for the current year: Problem 18-22 (IFRS) January 1 December 31 Fair value of plan assets Projected benefit obligation 2,600,000 2,000,000 Prepaid/acerued benefit cost - surplus 600,000 200,000 3,000,000 2,100,000 Asset ceiling Effect of asset ceiling 900,000 300,000 600,000 400,000 Current service cost Contribution to the plan Benefits paid Discount rate 100,000 350,000 150,000 10% 1. What is the actual return on plan assets for the current year: a. 200,000 b. 350,000 c. 150,000 d. 260,000 2 What is the actuarial gain due to decrease in PBO? a. 50,000 b. 40,000 . 30,000 d. 3. What amount should be reported as employee benefit expense? a. 200,000 b. 100,000 80,000 C. d. 40,000 4 What is the net remeasurement loss for the current year? a. 110,000 b. 220,000 c. 270,000 d. 170,000

Ultimate Company provided the following information in relation to a defined benefit plan for the current year: Problem 18-22 (IFRS) January 1 December 31 Fair value of plan assets Projected benefit obligation 2,600,000 2,000,000 Prepaid/acerued benefit cost - surplus 600,000 200,000 3,000,000 2,100,000 Asset ceiling Effect of asset ceiling 900,000 300,000 600,000 400,000 Current service cost Contribution to the plan Benefits paid Discount rate 100,000 350,000 150,000 10% 1. What is the actual return on plan assets for the current year: a. 200,000 b. 350,000 c. 150,000 d. 260,000 2 What is the actuarial gain due to decrease in PBO? a. 50,000 b. 40,000 . 30,000 d. 3. What amount should be reported as employee benefit expense? a. 200,000 b. 100,000 80,000 C. d. 40,000 4 What is the net remeasurement loss for the current year? a. 110,000 b. 220,000 c. 270,000 d. 170,000

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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