Reference no: EM133091219
Question - On January 1, 2022, Darvis Inc. reported the following information in relation to a defined benefit plan:
|
Fair value of plan asset (FVPA)
|
P7,000,000
|
|
Projected benefit obligation (PBO)
|
7,500,000
|
During the current year, the entity determined that the current service cost was P1,000,000 and the past service cost is P400,000.
The actual return on plan asset during the year was P840,000. Other related information for the current year:
|
Contribution to the plan
|
P1,200,000
|
|
Benefits paid to retirees
|
1,500,000
|
|
Decrease in projected benefit obligation due to changes in actuarial assumptions
|
200,000
|
|
Carrying amount (present value) of defined benefit obligation settled
|
500,000
|
|
Settlement price of defined benefit obligation
|
400,000
|
|
Discount rate
|
10%
|
Required - Answer the following and show your solution for each problem
1. What amount should be reported in the income statement for the current year as employee benefit expense?
2. What is the net amount of "remeasurements" for 2022?
3. What is the total amount of defined benefit cost?
4. What is the fair value of plan assets on December 31, 2022?
5. What is the projected benefit obligation on December 31, 2022?
6. What is the balance of the prepaid or accrued benefit cost on December 31, 2022?