Reference no: EM133076402
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%
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?