Reference no: EM133168054

Question - At the beginning of current year, Theo Company reported fair value of plan assets at P6,500,000 and projected benefit obligation at P7,500,000.

During the current year, the entity determined that the current service cost was P1,200,000 and the actual return on plan assets was P800,000 during the year.

The entity provided the following information during the year related to the defined benefit plan:

Discount Rate 10%

Benefits paid to retirees 1,500,000

Contributions to the plan 1,200,000

Decrease in projected benefit obligation due to change in actuarial assumptions 200,000

Required - Compute the employee benefit expense, total remeasurement gain and net adjustment for defined benefit liability/asset.