What be interest expense on defined benefit obligation

Assignment Help Financial Accounting
Reference no: EM132973174

Hi-Flie-Ing Corporation offers a defined benefit pension plan to all its eligible employees. The company uses the December 31 year end and uses IFRS to prepare its financial statements. It has reported a credit balance of $1,380,000 as at December 31, 2018 for its Net Defined Benefit Liability/Asset Account. The plan is underfunded by 20% of its Defined Benefit Obligation. The company also recorded, during 2019, $200,000 as Past Service Costs which were assumed to have accrued on January 1, 2019.

Problem 1: The company determines its interest expenses and benefits on the balance existing at the beginning of the year. You are told that the company recorded $386,400 as the expected returns on Plan Assets for the year. $546,000 were recorded as current services costs during 2019. What would be the interest expense on the Defined Benefit Obligation for 2019?

a. $497,000.
b. $96,000.
c. $483,000.
d. $200,000.
e. Cannot be determined with the given information.

Reference no: EM132973174

Questions Cloud

Why is digital transformation important for organizations : Digital Transformation and its impact on Enterprise Information Systems and Why is digital transformation important for organizations
What is the new required return : Suppose, interest rates and the required return for the bond in part ii) change, so that the market price of this bond is now $980. What is new required return
What be oci impact from gain on plan asset for hi-flie-ing : The company also recorded, during 2019, $200,000 as Past Service Costs which were assumed. What would be the OCI impact from gain or loss on Plan Assets?
What amount should be reported as doubtful accounts : During 2021, sales revenue totaled P21,200,000, cash collected from customers amounted to P19,800,000, What amount should be reported as doubtful accounts
What be interest expense on defined benefit obligation : $546,000 were recorded as current services costs during 2019. What would be the interest expense on the Defined Benefit Obligation for 2019?
What do think is going to be the working capital requirement : Retaews' is a premium sweater making company. What do think is going to be the working capital requirement of Retaews? Why?
What will your futures contract gain or loss be : What will your futures contract gain or loss be if you transacted the future contracts at the futures rate of $0.63, while the futures rate decreases to $0.61
What was service cost for year for tyree corporation : The discount rate applied by the actuary was 8%. There was no actuarial revaluation required nor any past service cost. What was the service cost for the year?
Find how should the company record change on the pension : The balance in the Defined Benefit Obligation on December 31, 2019 of a pension plan. How should the company record this change on the pension worksheet?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd