When is the balance of the net gain or loss account subject to amortization? O When it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. O Never. The net gain or loss account remains unrecognized. When it equals 10% of the beginning balance of the projected benefit obligation. O When it equals 10% of the beginning balance of the market-related value of the plan assets.

When is the balance of the net gain or loss account subject to amortization? O When it exceeds 10% of the larger of the beginning balances of the projected benefit obligation or the market-related value of the plan assets. O Never. The net gain or loss account remains unrecognized. When it equals 10% of the beginning balance of the projected benefit obligation. O When it equals 10% of the beginning balance of the market-related value of the plan assets.

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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E. Chariton Company provided the tollowing intormation concerning a detined benetit plan at the beginning of Surrent year prior to the adoption of revised PAS 19: Debit Credit Fair value of plan assets Unamortized past service cost Projected benefit obligation Unrecognized actuarial gain 4,750,000 1,250,000 5,500,000 850,000 The transactions for the current year relating to the defined benefit plan are as follows: Current service cost 925,000 Discount rate 6% Actual return on plan assets Contribution to the plan Benefits paid to retirees 485,000 1,350,000 995,000 Increase in projected benefit obligation due to changes in actuarial assumptions 150,000 Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined benefit plan. REQUIRED: 15. Prepare journal entry to recognize the transitional effect of adopting revised PAS 19. 16. Determine the employee benefit expense for the current year. 17. Compute the remeasurement related to the…
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6. Net Benefit Expense for 20x6 7. Net Benefit Expense for 20x7 8. The Gain/(Loss) attributable to the FVPA for 20x8. 9. The Gain/(Loss) attributable to the Defined Benefit Obligation for 20x9. 10. The Debit/(Credit) to Other Comprehensive Income for 20x9.
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The interest on the defined benefit obligation component of defined benefit expense reflects the incremental borrowing rate of the employer. is the current market rate. may be stated implicitly or explicitly when reported. is the same as the expected return on plan assets.
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