Solution-How much is the retirement benefit expense

How much is the retirement benefit expense

Reference no: EM132898372

Question - The following information relates to the defined benefit pension plan of ABC company for the year ending December 31, 2020:

Benefit Obligation, Jan 1 = 8,000,000

Fair Value of Plan Assets, Jan 1 = 9,500,000

Current Service Cost = 3,600,000

Actual Return on Plan Assets = 1,200,000

Employer Contribution = 3,300,000

Discount Rate = 10%

Accrual Loss on re-measurement of benefit obligation = 120,000

Assuming on December 31, 2019, a surplus of P 1,250,000 was presented in the statement of financial position of ABC Company, and on December 31,2020, there is an asset ceiling of P 1,000,000.

Required -

1. How much is the retirement benefit expense to be taken to profit or loss for the year 2020?

2. How much is the defined benefit cost taken to other comprehensive income for the year 2020?

3. How much is taken to other comprehensive income related to the effect of asset ceiling?

Reference no: EM132898372

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How much is the retirement benefit expense

Reference no: EM132898372

Reference no: EM132898372

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