You are the General Manager of Entity A. You have received the actuarial report for your company’s defined benefit plan. The report shows the following information: PV of DBO – Jan. 1, 20x1 1,500,000FVPA – Jan. 1, 20x1 1,200,000PV of DBO – Dec. 31, 20x1 1,800,000FVPA, end. – Dec. 31, 20x1 1,310,000Actuarial gain 100,000Return on plan assets 110,000Discount rate5% When reporting on your company’s year-end highlights of financial summary, which of the following will you report to the Board of Directors (the ‘big bosses’)?

Formula: Increase net defined benefit liability=Net defined benefit liability, end.-Net defined…

Answered: You are the General Manager of Entity…

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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You are the General Manager of Entity A. You have received the actuarial report for your company’s defined benefit plan. The report shows the following information:

PV of DBO – Jan. 1, 20x1	1,500,000
FVPA – Jan. 1, 20x1	1,200,000
PV of DBO – Dec. 31, 20x1	1,800,000
FVPA, end. – Dec. 31, 20x1	1,310,000
Actuarial gain	100,000
Return on plan assets	110,000
Discount rate	5%

When reporting on your company’s year-end highlights of financial summary, which of the following will you report to the Board of Directors (the ‘big bosses’)?

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