The Campolino Company has a defined benefit post-retirement health care plan for its employees. At the beginning of Year 1, Campolino amended the plan to provide additional benefits to all employees.  

The following facts apply to the plan for the year ended December 31, Year 1:

Other information:    

• There are no retirees and none of the active employees is vested.     

• There are no unamortized actuarial gains or losses at the beginning of the year.     

• Benefits and employer contributions were paid on December 31, Year 1.  

Required: 

Use the following template to determine the post retirement benefit expense for the year ended December 31, Year 1 and the post-retirement benefit liability at December 31, Year 1 to be reported by Campolino Company under IFRS. Prepare the necessary journal entry to reflect these amounts.

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Present value of defined benefit obligation (PVDBO) on January 1, Year 1 ..... Plan assets at fair value on January 1, Year 1 Unamortized past service costs (PSC) on January 1, Year 1.... Plan assets at fair value on December 31, Year 1 ... Actual return on plan assets..... Service cost .... Employer contributions ... Benefit payments.... Average remaining vesting period ... Expected return on plan assets... Discount rate.... $650,000 420,000 56,000 449,000 21,000 46,000 48,000 40,000 5 years 8 percent 5 percent