ABC LTD has a defined benefit pension plan. As at 31 December 2018, its plan had a book value of $140 million and a fair value of $160 million. The PBO at the time was $150 million. During the year, the company contributed an amount of $20 million to the fund, the fund paid out $ 15 million while the return on plan assets was $10 million. Service costs were $30 million, interest costs amounted to $12 million while actuarial gains were $3 million.Required; I). Fair value of plan assets as at 31 December 2019 II). The projected plan obligations as at 31 December 2019
ABC LTD has a defined benefit pension plan. As at 31 December 2018, its plan had a book value of $140 million and a fair value of $160 million. The PBO at the time was $150 million. During the year, the company contributed an amount of $20 million to the fund, the fund paid out $ 15 million while the return on plan assets was $10 million. Service costs were $30 million, interest costs amounted to $12 million while actuarial gains were $3 million.Required; I). Fair value of plan assets as at 31 December 2019 II). The projected plan obligations as at 31 December 2019
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter19: Accounting For Post Retirement Benefits
Section: Chapter Questions
Problem 3RE: Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn...
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ABC LTD has a defined benefit pension plan. As at 31 December 2018, its plan had a book value of $140 million and a fair value of $160 million. The PBO at the time was $150 million. During the year, the company contributed an amount of $20 million to the fund, the fund paid out $ 15 million while the return on plan assets was $10 million. Service costs were $30 million, interest costs amounted to $12 million while actuarial gains were $3 million.Required;
I). Fair value of plan assets as at 31 December 2019
II). The projected plan obligations as at 31 December 2019
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