2A. Please calculate the economic pension expense under US Plan for AIG in the year 201 9...
Fantastic news! We've Found the answer you've been seeking!
Question:
2A. Please calculate the economic pension expense under US Plan for AIG in the year 2019. (20%.)
2B. What should be the adjustment made to net profit during operation cash flow (CFO) calculation in response to US plan pension cost by the end of 2019? (10%)
Transcribed Image Text:
The following tables present the financial information for the AIG US Pension plans as of the end of 2019.< The funded status of AIG pension plan is as follows:< As of or for the Years Ended December 31, (in millions) Change in projected benefit obligation: Benefit obligation, beginning of year Service cost Interest cost Actuarial (gain) loss Benefits paid: AIG assets Plan assets Plan amendment Curtailments Settlements Foreign exchange effect Other Projected benefit obligation, end of year Change in plan assets: Fair value of plan assets, beginning of year Actual return on plan assets, net of expenses AIG contributions Benefits paid: AIG assets Plan assets Settlements Foreign exchange effect Other Fair value of plan assets, end of year Funded status, end of year Amounts recognized in the balance sheet: Assets Liabilities U.S. Plans 2019 5 176 536 $ $ (18) (279) $ 4,553 $ 5,091 $ 1,138 $ 1,202 $ 21 22 15 16 91 (28) $ 3,840 $ 744 178 (18) (279) Pension 4,465 $ (507) $ 2018 (507) $ (507) $ 5 162 (383) (16) (306) (2) (67) 18 1 $ 4,972 $ 4,553 $ 1,174 $ 1.138 $ 4,350 $ (204) 16 (16) (306) Non-U.S. Plans 2019 3.840 $ (713) $ $ (713) (713) $ (8) (33) (8) (33) (67) 19 861 $ 875 $ 64 6 63 51 899 $ (275) S 2018 65 $ (340) (275) S (9) (32) 3 (195) S (22) (217) S (5) (31) (9) (25) 861 S (277) S 72 $ (349) (277) S Total amounts recognized Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ (1,436) S (1,450) $ Prior service (cost) credit Total amounts recognized S (1,436) S (1.450) $ (a) Includes non-qualified untunded plans of which the aggregate proiected benefit oblication was $251 million and $250 mill (149) S (23) (172) S The following tables present the financial information for the AIG US Pension plans as of the end of 2019.< The funded status of AIG pension plan is as follows:< As of or for the Years Ended December 31, (in millions) Change in projected benefit obligation: Benefit obligation, beginning of year Service cost Interest cost Actuarial (gain) loss Benefits paid: AIG assets Plan assets Plan amendment Curtailments Settlements Foreign exchange effect Other Projected benefit obligation, end of year Change in plan assets: Fair value of plan assets, beginning of year Actual return on plan assets, net of expenses AIG contributions Benefits paid: AIG assets Plan assets Settlements Foreign exchange effect Other Fair value of plan assets, end of year Funded status, end of year Amounts recognized in the balance sheet: Assets Liabilities U.S. Plans 2019 5 176 536 $ $ (18) (279) $ 4,553 $ 5,091 $ 1,138 $ 1,202 $ 21 22 15 16 91 (28) $ 3,840 $ 744 178 (18) (279) Pension 4,465 $ (507) $ 2018 (507) $ (507) $ 5 162 (383) (16) (306) (2) (67) 18 1 $ 4,972 $ 4,553 $ 1,174 $ 1.138 $ 4,350 $ (204) 16 (16) (306) Non-U.S. Plans 2019 3.840 $ (713) $ $ (713) (713) $ (8) (33) (8) (33) (67) 19 861 $ 875 $ 64 6 63 51 899 $ (275) S 2018 65 $ (340) (275) S (9) (32) 3 (195) S (22) (217) S (5) (31) (9) (25) 861 S (277) S 72 $ (349) (277) S Total amounts recognized Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ (1,436) S (1,450) $ Prior service (cost) credit Total amounts recognized S (1,436) S (1.450) $ (a) Includes non-qualified untunded plans of which the aggregate proiected benefit oblication was $251 million and $250 mill (149) S (23) (172) S
Expert Answer:
Answer rating: 100% (QA)
ANSWER 2A To calculate the economic pension expense under US Plan for AIG in the year 2019 we need t... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The following information is based on an actual annual report. Different names and years are being used. Bond and some of its subsidiaries provide certain postretirement medical, dental, and vision...
-
The following information is based on an actual annual report. Different names and years are being used. Bond and some of its subsidiaries provide certain postretirement medical, dental, and vision...
-
Help Mad Mildred's Magic Mall by determining the missing values in the table Labor (workers/day) Output (units/day) Total fixed cost ($/day) Total variable cost ($/day) Total cost ($/day) 50 50 50 75...
-
Refer to the data for Lavage Rapide in Exercise 108. The actual operating results for August appear on the following page. Data from problem Exercise 10-8 Required: Prepare a report showing the...
-
A firms total net operating capital for the previous year was $9.3 million. For the current year, its total net operating capital is $10 million, and its NOPAT is $1.2 million. What is its free cash...
-
For binary distillation with \(\mathrm{CMO}, \mathrm{v}_{\text {ref,mol }}=0\). If \(\mathrm{CMO}\) is valid, show that \(\mathrm{v}_{\text {ref,mass }} eq 0\) if \(\mathrm{MW}_{\mathrm{A}} eq...
-
Computer Associates International, Inc., the worlds leading business software company, delivers the end-to-end infrastructure to enable e-business through innovative technology, services, and...
-
In your new role as comptroller of the hospital, your CFO has asked you to prepare a financial analysis by evaluating a medical supply company, Hillside, Inc., that the hospital is considering...
-
Create a new What SUP Operating Cash Payments Budget Using the ch6-03 file to start your work, create a worksheet similar to the one created in this chapter to budget operating cash payments by month...
-
Your friend tells you that the proportion of active Major League Baseball players who have a batting average greater than .300 is different from 0.63, a claim you would like to test. If you conduct a...
-
4. Make sure you use appropriate in-text citation and referencing to avoid plagiarism 5. Proofread all your answers. 6. Submit the answer sheet to the Assignment 2 Submission Folder. Questions...
-
How estimate of the appropriate EBITDA multiple for Performance Coatings with reference to the comparable companies as set. For simplicity, assume net debt equals total debt. Note, the multiple must...
-
You are a Project Coordinator at Centennial College You report to Sandy Sun, who is the Project Manager (PM) You are presenting (synchronously) the Project Charter to the new CEO at Centennial...
-
An analysis of the professional fees for 2021 revealed the following expenses: Legal and accounting fees related to the issuance of shares of 34,700 Costs incurred regarding the renegotiating of the...
-
A time you achieved a work or personal goal you didn't think was possible. What was the challenge, and what did you do to work toward accomplishing it? How did you follow through on your commitment?
-
How did we get 9.38% and why are we using this for cost of capital. Is there a calculation or formula? Why are we using this as the discount rate? WACC = 9.38% for the target D/V of 20.99
-
TRUE OR FALSE: 1. Banks with a significantly large share of fixed-interest rate home loans are less exposed to interest rate risks. 2. Although Australian banks are pretty big, they are not...
-
Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Kathy Kennedy (age 44) is a single taxpayer and she lives at 212 North Pine Way, Payson, AZ 85541. Her Social Security number is 467-98-9784. Kathy's earnings and income tax withholding as the...
-
Van makes an investment in a partnership in 2012. Van's capital contributions to the partnership consisted of $30,000 cash and a building with an adjusted basis of$70,000, subject to a nonrecourse...
-
Pearce Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect....
-
Refer to the data given for the Pruitt Company in Problem P12-3A. Required a. Compute the change in cash that occurred in 2019. b. Prepare a statement of cash flows using the direct method. Use one...
-
Refer to the data given for the North Company in Problem P12-2A a. Calculate the change in cash that occurred during 2019. b. Prepare a statement of cash flows using the direct method. Problem P12-2A...
Study smarter with the SolutionInn App