Reference no: EM133077369
Question - COLOMBIA Company provided the following information concerning the defined benefit plan at the beginning of current year, prior to the adoption of PAS 19R.
Fair value of plan assets 9,500,000
Unamortized past service cost 2,600,000
Projected benefit obligation (12,000,000)
Unrecognized actuarial gain (1,800,000)
Prepaid/accrued benefit cost - credit (1,700,000)
Transactions for the current year
Current service cost 1,800,000
Actual return on plan assets 1,100,000
Contribution to the plan 2,700,000
Benefits paid to retirees 2,000,000
Increase in projected benefit obligation due to change in actuarial assumptions 400,000
Present value of defined benefit obligation settled 600,000
Settlement price of defined benefit obligation 800,000
Discount Rate 10%
Required -
1. What amount should be reported as employee benefit expense for the current year?
2. What is the net amount of re-measurements for the current year?
3. What is the fair value of plan assets on December 31?
4. What is the projected benefit obligation on December 31?
5. What is the balance of the prepaid/accrued benefit cost on December 31?