Reference no: EM133079564
Question - The actuarial valuation report of an entity shows the following information:
Present value of defined benefit obligation, Jan. 1 2,000,000
Fair value of plan assets, Jan. 1 2,400,000
Current service cost 40,000
Contributions to the retirement fund during the year 220,000
Benefits paid to retirees 60,000
Past Service Cost 30,000
Nominal rate 10%
Discount rate 12%
Return on plan assets 120,000
Required -
1. Compute for the employee benefit expense.
2. Compute for the remeasurement gain/loss on plan assets.
3. Compute for the balance of the present value of defined benefit obligation as of year-end.
4. Compute for the balance of the present value of the fair value of plan assets as of year-end.