Berstler Limited sponsors a defined benefit pension plan, which it accounts for using the deferral and amortization
Question:
The average remaining service life and period to full eligibility is 20 years.
Instructions
(a) Calculate the actual return on the plan assets in 2011.
(b) Calculate the amount of the unrecognized net actuarial gain or loss as of December 31, 2011 (assume the January 1, 2011 balance was zero).
(c) Calculate the amount of actuarial gain or loss amortization for 2011 using the corridor approach. How will 2012€™s expense be affected, if at all?
(d) Calculate the amount of past service cost amortization for 2011.
(e) Calculate the pension expense for 2011.
(f) Prepare a schedule reconciling the plan€™s funded status with the amount reported on the December 31, 2011 balance sheet.
Step by Step Answer:
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.