The following facts apply to the pension plan of Yorke Inc. for the year 2023. Yorke applies ASPE.

Instructions

a. Using a work sheet, calculate defined benefit expense for the year 2023, and provide the entries to recognize the expense and contributions for the year assuming that Yorke has chosen the funding measure of its defined benefit obligation as its accounting policy choice.

b. Discuss what adjustments would need to be made to your calculations and entries in part (a) if Yorke’s accounting policy choice was the accounting measure of its defined benefit obligation.

c. Calculate defined benefit expense if IFRS had been applied to this plan. Comment on any difference between this expense and the defined benefit expense calculated in part (b).

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Plan assets, January 1, 2023 Defined benefit obligation, funding basis, January 1, 2023 Defined benefit obligation, accounting basis, January 1, 2023 Discount/interest rate Annual pension service cost Contributions Actual return on plan assets Benefits paid to retirees $490,000 389,000 490,000 8.5% 40,000 30,000 49,700 33,400