Reference no: EM133033085
Question - Post-Retirement Benefit Expense, Surplus or Deficit, and Reconciliation - Rosek Inc. provides the following information related to its post-retirement health-care benefits for the year 2020:
Plan assets, January 1, 202042,000
Defined post-retirement benefit obligation at January 1, 2020 $110,000
Actual return on plan assets, 2020 3,000
Discount rate 10%
Service cost, 2020 57,000
Plan funding during 2020 22,000
Payments from plan to retirees during 2020 6,000
Actuarial loss on defined post-retirement benefit obligation, 2020 (end of the year) 31,000
Rosek Inc. follows IFRS.
Required -
a. Calculate the post-retirement benefit expense for 2020.
b. Calculate the post-retirement benefit re-measurement gain or loss-other comprehensive income (OCI) for 2020.
c. Determine the December 31, 2020 balance of the plan assets, the defined post-retirement benefit obligation, and the plan surplus or deficit.
d. Determine the balance of the net post-retirement benefit liability/asset account on the December 31, 2020 SFP.
e. Reconcile the plan surplus or deficit with the amount reported on the SFP at December 31, 2020.