Return to the facts of A19-13. Assume instead that this pension plan is sponsored by a private company and ASPE applies.

Data From A19-13

The following data relate to a defined benefit pension plan:

Required:
1. Prepare all entries for 20X9.
2. Based on the entries based on requirement 1, calculate the SFP net defined benefit liability as of 31 December 20X9, and prove this number based on the closing balances of the defined benefit liability and pension plan assets.

Transcribed Image Text:

Defined benefit obligation, 31 December 20X8 Fair value of plan assets, 31 December 20X8 Impact of applying the asset ceiling test 31 December 20X8: Maximum surplus recoverable Benefits paid to retirees in 20X9 throughout the year Current service cost for 20X9 Funding payment 1 May 20X9 Actuarial revaluation dated 31 December 20X9; decrease to liability because of changed mortality assumptions. Actual return (loss) on plan assets for 20X9 Long-term yield on corporate bonds Impact of applying the asset ceiling test for 20X9: Maximum surplus recoverable $ 496,000 702,000 $ 120,000 7,200 65,100 6,000 (12,000) (17,500) 5% $125,000