Beale management has a noncontributory

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Reference no: EM13960195

Beale Management has a noncontributory, defined benefit pension plan. The company provided the following information regarding its pension accounts for the fiscal year ended on December 31, 2015.

	$ in millions
PBO Balance, January 1	$590
Service cost	70
Prior service cost	27
Plan Assets Balance, January 1	500
Actual return on plan assets	18

- There were no OCI balances related to pensions on January 1, 2015. At the end of 2015, Beale amended the pension formula creating a prior service cost of $27 million.

- Beale prepares its financial statements according to IFRS. The interest rate on high quality corporate bonds is 4%.

1/ Determine the net pension cost for 2015.

2/ Prepare the journal entry to record Beale's pension expense, gains or losses, and prior service cost.

Reference no: EM13960195

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