2A. Please calculate the economic pension expense under US Plan for AIG in the year 201 9...
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2A. Please calculate the economic pension expense under US Plan for AIG in the year 2019. (20%.)
2B. What should be the adjustment made to net profit during operation cash flow (CFO) calculation in response to US plan pension cost by the end of 2019? (10%)
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The following tables present the financial information for the AIG US Pension plans as of the end of 2019.< The funded status of AIG pension plan is as follows:< As of or for the Years Ended December 31, (in millions) Change in projected benefit obligation: Benefit obligation, beginning of year Service cost Interest cost Actuarial (gain) loss Benefits paid: AIG assets Plan assets Plan amendment Curtailments Settlements Foreign exchange effect Other Projected benefit obligation, end of year Change in plan assets: Fair value of plan assets, beginning of year Actual return on plan assets, net of expenses AIG contributions Benefits paid: AIG assets Plan assets Settlements Foreign exchange effect Other Fair value of plan assets, end of year Funded status, end of year Amounts recognized in the balance sheet: Assets Liabilities U.S. Plans 2019 5 176 536 $ $ (18) (279) $ 4,553 $ 5,091 $ 1,138 $ 1,202 $ 21 22 15 16 91 (28) $ 3,840 $ 744 178 (18) (279) Pension 4,465 $ (507) $ 2018 (507) $ (507) $ 5 162 (383) (16) (306) (2) (67) 18 1 $ 4,972 $ 4,553 $ 1,174 $ 1.138 $ 4,350 $ (204) 16 (16) (306) Non-U.S. Plans 2019 3.840 $ (713) $ $ (713) (713) $ (8) (33) (8) (33) (67) 19 861 $ 875 $ 64 6 63 51 899 $ (275) S 2018 65 $ (340) (275) S (9) (32) 3 (195) S (22) (217) S (5) (31) (9) (25) 861 S (277) S 72 $ (349) (277) S Total amounts recognized Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ (1,436) S (1,450) $ Prior service (cost) credit Total amounts recognized S (1,436) S (1.450) $ (a) Includes non-qualified untunded plans of which the aggregate proiected benefit oblication was $251 million and $250 mill (149) S (23) (172) S The following tables present the financial information for the AIG US Pension plans as of the end of 2019.< The funded status of AIG pension plan is as follows:< As of or for the Years Ended December 31, (in millions) Change in projected benefit obligation: Benefit obligation, beginning of year Service cost Interest cost Actuarial (gain) loss Benefits paid: AIG assets Plan assets Plan amendment Curtailments Settlements Foreign exchange effect Other Projected benefit obligation, end of year Change in plan assets: Fair value of plan assets, beginning of year Actual return on plan assets, net of expenses AIG contributions Benefits paid: AIG assets Plan assets Settlements Foreign exchange effect Other Fair value of plan assets, end of year Funded status, end of year Amounts recognized in the balance sheet: Assets Liabilities U.S. Plans 2019 5 176 536 $ $ (18) (279) $ 4,553 $ 5,091 $ 1,138 $ 1,202 $ 21 22 15 16 91 (28) $ 3,840 $ 744 178 (18) (279) Pension 4,465 $ (507) $ 2018 (507) $ (507) $ 5 162 (383) (16) (306) (2) (67) 18 1 $ 4,972 $ 4,553 $ 1,174 $ 1.138 $ 4,350 $ (204) 16 (16) (306) Non-U.S. Plans 2019 3.840 $ (713) $ $ (713) (713) $ (8) (33) (8) (33) (67) 19 861 $ 875 $ 64 6 63 51 899 $ (275) S 2018 65 $ (340) (275) S (9) (32) 3 (195) S (22) (217) S (5) (31) (9) (25) 861 S (277) S 72 $ (349) (277) S Total amounts recognized Pre-tax amounts recognized in Accumulated other comprehensive income (loss): Net gain (loss) $ (1,436) S (1,450) $ Prior service (cost) credit Total amounts recognized S (1,436) S (1.450) $ (a) Includes non-qualified untunded plans of which the aggregate proiected benefit oblication was $251 million and $250 mill (149) S (23) (172) S
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ANSWER 2A To calculate the economic pension expense under US Plan for AIG in the year 2019 we need t... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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