ADMS 3531 Lecture Notes - Tax Deduction, Gotland Regiment, International Accounting Standards Board

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pucewildebeest131

2 Nov 2012

School

York University

Department

Administrative Studies

Course

ADMS 3531

Professor

Dale Domian

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Document Summary

Ifrs questions are available at the end of this chapter. Reporting accumulated oci (psc) on the balance sheet. Reconciliation of pbo and fair value of plan assets. Answer d c d c b b a c a a d d d a c. Projected benefit obligation as a measure of pension obligation. Gain or loss caused by a plant closing. Item not recognized. a b b c a c c b a d b a a a d a a b c c c c a c b d b. *this topic is dealt with in an appendix to the chapter. Answer d c a b a a b d d b b a d. Answer b c b c b c b b a c d c b d b d d c d a b a b. Calculate pension asset / liability recognized in the balance sheet. Determine pension asset / liability to be reported.

Related Questions

Pharoah Corp. sponsors a defined benefit pension plan for itsemployees. On January 1, 2017, the following balances relate tothis plan.

Plan assets $498,300

Projected benefit obligation 614,700

Pension asset/liability 116,400

Accumulated OCI (PSC) 96,900 Dr.

As a result of the operation of the plan during 2017, thefollowing additional data are provided by the actuary.

Service cost $92,500

Settlement rate, 9%

Actual return on plan assets 54,200

Amortization of prior service cost 18,100

Expected return on plan assets 51,200

Unexpected loss from change in projected benefit obligation,

due to change in actuarial predictions 74,200

Contributions 97,200

Benefits paid retirees 82,600

Using the data above, compute pension expense for Pharoah Corp.for the year 2017 by preparing a pension worksheet. (Enter allamounts as positive.)

PHAROAH CORP.

Pension Worksheet

General Journal Entries

Memo Record

Items

Annual Pension

Expense

Cash

OCIâPrior

Service Cost

OCIâ Gain/

Loss

Pension Asset/

Liability

Projected Benefit

Obligation

Plan

Assets

Balance, Jan. 1, 2017

Service cost

Interest cost

Actual return

Unexpected gain

Amortization of PSC

Liability increase

Contributions

Benefits

Journal entry for 2017

Accumulated OCI, Dec. 31, 2016

Balance, December 31, 2017

Prepare the journal entry for pension expense for 2017. (Creditaccount titles are automatically indented when amount is entered.Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

purpletiger787

Problem 20-3

Gottschalk Company sponsors a defined benefit plan for its 100employees. On January 1, 2014, the companyâs actuary provided thefollowing information.

Accumulated other comprehensive loss (PSC)		$155,100
Pension plan assets (fair value and market-related assetvalue)		200,400
Accumulated benefit obligation		268,500
Projected benefit obligation		380,600

The average remaining service period for the participatingemployees is 10 years. All employees are expected to receivebenefits under the plan. On December 31, 2014, the actuarycalculated that the present value of future benefits earned foremployee services rendered in the current year amounted to $53,400;the projected benefit obligation was $495,500; fair value ofpension assets was $277,200; the accumulated benefit obligationamounted to $367,600. The expected return on plan assets and thediscount rate on the projected benefit obligation were both 10%.The actual return on plan assets is $11,400. The companyâs currentyearâs contribution to the pension plan amounted to $65,400. Nobenefits were paid during the year.

Determine the components of pension expense that the companywould recognize in 2014.

Components of Pension Expense

Service Cost - 53,400

Interest on Projected Benefit Obligation - 38,060

Actual Return on Plan Assets - (11,400)

Unexpected Loss - (8,640)

Amortization of Gain or Loss - 0

Amortization of Prior Service Cost - 15,510

Pension Expense - 86,930

Prepare the journal entry to record the pension expense and thecompanyâs funding of the pension plan in 2014

Other Comprehensive Income (G/L) -

Pension Expense -

Cash -

Pension Asset/Liability -

Other Comprehensive Income (PSC) -

Compute the amount of the 2014 increase/decrease in gains orlosses and the amount to be amortized in 2014 and 2015.

2014 Increase/Decrease in _____________ $_____________

Amortization in 2014

Amortization in 2015

Indicate the pension amounts reported in the financial statementas of December 31, 2014.

Gottschalk Company Income Statement (Partial) For the year endedDcember 31, 2014


	$

Gottschalk Company Comprehensive Income Statement December 31,2014

Gottschalk company Balance Sheer (Partial) December 31, 2014

silverotter963

Presented below is information related to Jones DepartmentStores, Inc. pension plan for 2015.

Accumulated benefit obligation (at year-end)		$590,000
Service cost		530,000
Funding contribution for 2015		470,000
Settlement rate used in actuarial computation		9%
Expected return on plan assets		8%
Amortization of PSC (due to benefit increase)		99,000
Amortization of net gains		47,000
Projected benefit obligation (at beginning of period)		460,000
Fair value of plan assets (at beginning of period)		350,000

A. -Pesnsion expense to be reported in 2015?________

B. -Prepare the journal entry to record pension expense and theemployer's contribution for 2015

Pension Expense DR

Other Comprehensive Income (G/L) DR

Cash CR

Other Comprehensive Income (PSC) CR

Pension Asset/Liability CR

taupemarten625

ADMS 3531 Lecture Notes - Tax Deduction, Gotland Regiment, International Accounting Standards Board

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