On January 1, 2020 prior to PAS 19R, Pascual Company provided the following data in connection with
Question:
On January 1, 2020 prior to PAS 19R, Pascual Company provided the following data in connection with its defined benefit plan: Fair value of plan assets 10,000,000
Unamortized past service cost 1,000,000
Projected benefit obligation (13,000,000)
Prepaid/accrued benefit cost (2,000,000)
The remaining vesting period for employees covered by the past service cost is 5 years. The entity adopted PAS 19R on January 1, 2020. Transactions affecting the plan for 2020 are: Current service cost 2,500,000
Interest expense 1,300,000
Interest income on plan assets 1,000,000
Decrease in PBO due to changes in actuarial assumptions 400,000
Contribution to the plan 3,500,000
Benefit paid to retirees 3,000,000
Actual return on plan assets 1,500,000
Present value of benefits settled in advance 800,000
Payment for benefits settled in advance 900,000
Required:
What is the fair value of plan assets on December 31, 2020?
What is the accrued benefit cost to be reported on December 31, 2020?
