What is the employee benefit expense for the current year

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Reference no: EM133008539

Problem - Corporation established a defined benefit plan for its employees and provided the following information: Fair value of plan assets as of January 1 was P5,500,000 and December 31 P6,300,000, Projected benefit obligation as of January 1 was P6,000,000 and December 31 P6,800,000. Current and past service cost were P700,000 and P550,000, respectively. Contributions to the plan during the year was P900,000 while benefits paid during the year was P450,000. The expected rate of return on plan assets was 10%, the weighted average rate of return for plan assets was 9.5%, the discount rate for plan assets was 8%.

Required -

1. What is the employee benefit expense for the current year?

2. How much is the actuarial gain/loss on return on plan assets?

3. What is the prepaid/accrued balance of the pension at yearend?

4. How much is the defined benefit cost?

Reference no: EM133008539

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