90.2K
Verified Solution
Link Copied!
Question 1 (Components of Defined Benefit Obligation and Plan Assets)
The following data relate to Omega Company's pension plan for the year 2017:
| Actual return on plan assets | $70,000 |
| Benefits paid | 45,000 |
| Contributions to plan | 87,000 |
| Fair value of plan assets at January 1, 2017 | 600,000 |
| Cost of past service benefits granted effective December 31, 2017 | 34,000 |
| Defined benefit obligation at January 1, 2017 | 627,000 |
| Current service cost | 82,000 |
| Actuarial loss | 39,000 |
| Interest (discount) rate | 8% |
Part A
Prepare a pension worksheet for 2017 based on the IFRS approach. Show the journal entries for pension expense and contribution for 2017.
Part B
Prepare a pension worksheet for 2017 based on the ASPE approach. Show the journal entries for pension expense and contribution for 2017.
Answer & Explanation
Solved by verified expert
