Mila Enterprises Ltd. provides the following information about its defined benefit pension plan:
Balances or Values at December .............31, 2011
Accrued benefit obligation, accounting purposes ........$2,737,000
Accrued benefit obligation, funding purposes .........1,980,000
Vested benefit obligation ................ 1,645,852
Fair value of plan assets ................ 2,278,329
Unrecognized past service cost ............. 205,000
Unrecognized net actuarial loss (1/1/11 balance, –0–) ...... 45,680
Accrued pension liability ................ 207,991
Other pension plan data:
Service cost for 2011 ................. 94,000
Past service cost amortization for 2011 .......... 45,000
Actual return on plan assets in 2011............. 130,000
Expected return on plan assets in 2011 .......... 175,680
Interest on Jan. 1, 2011 accrued benefit obligation ...... 253,000
Funding of plan in 2011 ................ 92,329
Benefits paid ...................... 140,000
Instructions
(a) Prepare the required disclosures for Mila’s financial statements for the year ended December 31, 2011, assuming the company is not a public company and does not have broad public accountability.
(b) Prepare the required disclosures that would be required if Mila’s common shares were traded on the Toronto Stock Exchange.
(c) Calculate the January 1, 2011 balances for the pension-related accounts.