Refer to the situation described in E 17-21. Projected Benefit Obligation ($ in millions) Balance, January 1....................................................$360

Question:

Refer to the situation described in E 17-21.
Projected Benefit Obligation ($ in millions)
Balance, January 1....................................................$360
Service cost...............................................................60
Prior service cost.........................................................12
Interest cost (7.5%)......................................................27
Benefits paid...........................................................(37)
Balance, December 31................................................$422
Plan Assets
Balance, January 1....................................................$240
Actual return on plan assets.............................................27
Contributions 2018......................................................60
Benefits paid...........................................................(37)
Balance, December 31...............................................$290
Required:
How might your solution differ if Lacy Construction prepares its according to International Financial Reporting Standards? Assume the actuary's is the rate on high quality corporate bonds. Include any appropriate journal entries in your response.
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