Reference no: EM133081390
Question - Metlock Inc. has a defined benefit plan for its employees. On December 31, 2019 the company's records showed the following information related to the plan:
Pension plan assets $839,000
Defined benefit obligation 927,000
All employees are expected to receive benefits under the plan. The company's actuary provided the following information as at December 31, 2020:
Current year service cost $175,000
Past service benefits, granted July 1, 2020 29,000
Discount rate 5%
Actual return on assets 6%
Contributions for the year 265,000
Benefits paid to retirees 128,000
Calculate pension expense for Metlock Inc. for 2020, assuming ASPE is used.
Calculate pension expense for Metlock Inc. for 2020, assuming IFRS is used.