Solution-Computing minimum pension liability

Computing minimum pension liability

Reference no: EM13553593

Computing Minimum Pension Liability

Chateau Furniture and Cabinet Mfg. Co. computes the following balances for its defined benefit pension plan as of the end of its fiscal year.

	(in thousands)
PBO	$1,625
ABO	1,380
FVPF	1,460
Market-related value of the pension fund (5-year weighted average)	1,336
Accrued pension cost	61
Unrecognized prior service cost	295
Unrecognized net pension (gain)	(191)

1. According to FASB Statement No. 87, what is the amount of additional liability, if any, required to reflect the minimum pension liability?

2. Some FASB members believed that the minimum pension liability should consider expected future salary levels rather than the current levels. If this approach had been adopted in the standard, what additional liability adjustment, if any, would have been required?

Reference no: EM13553593

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Computing minimum pension liability

Reference no: EM13553593

Reference no: EM13553593

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