Answer the following questions about the pro-forma income statement prepared in accordance with AASB 1056. (a)...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Answer the following questions about the pro-forma income statement prepared in accordance with AASB 1056. (a) Is the entity a defined contribution or a defined benefit superannuation entity? Explain. (b) Why does AASB 1056 require superannuation entities and approved deposit funds to prepare an income statement rather than a single statement of comprehensive income? (c) The net benefit allocated to members' accounts of $2635776 is shown as a loss. Explain why this allocation, which increases members' accrued benefits, is recognised as a loss. (LOS) Gone Fishing Superannuation Plan Income Statement for the Year Ended 30 June 2020 Superannuation activities Interest revenue Dividends revenue Trust distributions revenue Other income Net remeasurement changes in assets measured at fair value Investment expenses Administration expenses Other expenses Net income from superannuation activities Net loss from insurance activities Profit from operating activities less Net benefits allocated to members' accounts Profit before income tax Income tax expense Loss after income tax Source: Modified from Illustrative Example I, AASB 1056, p. 41. $000 238152 286794 282086 5426 2155242 (55972) (42662) (642) 2868424 (36) 2868388 (2635776) 232612 (235553) (2941) Answer the following questions about the pro-forma income statement prepared in accordance with AASB 1056. (a) Is the entity a defined contribution or a defined benefit superannuation entity? Explain. (b) Why does AASB 1056 require superannuation entities and approved deposit funds to prepare an income statement rather than a single statement of comprehensive income? (c) The net benefit allocated to members' accounts of $2635776 is shown as a loss. Explain why this allocation, which increases members' accrued benefits, is recognised as a loss. (LOS) Gone Fishing Superannuation Plan Income Statement for the Year Ended 30 June 2020 Superannuation activities Interest revenue Dividends revenue Trust distributions revenue Other income Net remeasurement changes in assets measured at fair value Investment expenses Administration expenses Other expenses Net income from superannuation activities Net loss from insurance activities Profit from operating activities less Net benefits allocated to members' accounts Profit before income tax Income tax expense Loss after income tax Source: Modified from Illustrative Example I, AASB 1056, p. 41. $000 238152 286794 282086 5426 2155242 (55972) (42662) (642) 2868424 (36) 2868388 (2635776) 232612 (235553) (2941)
Expert Answer:
Answer rating: 100% (QA)
a Is the entity a defined contribution or a defined benefit super ann uation entity Explain ANS WER ... View the full answer
Related Book For
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
Posted Date:
Students also viewed these accounting questions
-
In its income statement for the year ended June 30, 2007, The Clorox Company reported the following condensed data (dollars in millions). Instructions (a) Prepare a multiple-step income statement....
-
In its income statement for the year ended June 30, 2009, The Clorox Company reported the following condensed data (dollars in millions). Selling and Research and administrative expenses .... $ 715...
-
RPI, Inc. Income Statement For the Year Ended 12/31/2019 Sales (all credit) Less: Cost of goods sold Gross profits Less: Operating and interest expenses General and administrative $700,000 500,000...
-
Suppose Nordic Boots was making production decisions for the following six boots: ot Price E(Demand) Std. Dev (Demand) Co Cu Exp. Profit Max. Profit A 220 1000 400 35.2 52.8 1101 39201 52800 230 2000...
-
Final assembly (X) requires one week to assemble and has a component part (A) requiring two weeks to be fabricated. Three units of final assembly A and four units of part B are currently on hand. The...
-
In Problems 6184, solve each equation on the interval 0 < 2. 2 sin 203(1 - cos(-0))
-
After installation, the lifetime of a ball bearing is modeled as an exponential distribution with failure rate \(\alpha=0.001\) failures per day. (a) What is the probability that the ball bearing...
-
The DotCom Corporation is implementing a pension plan for its employees. The company intends to start funding the plan with a deposit of $50,000 on January 1, 2008. It plans to invest an additional...
-
Deploy AI's natural language and decision support to automatically generate individual feedback for each student as they submit responses to lab questions. The feedback goes further than telling the...
-
OMalley plc requires a bank loan for additional working capital to finance expansion. The bank has requested an audited income statement for the year 2022. The accountant for OMalley plc provides you...
-
In your own words and understanding, list and explain briefly the phases/ steps of a control evaluation of a client's internal control system- its design, placement, and operating effectiveness of...
-
2. Calculate the kinetic energies of each of the following objects. Express your answers in Joule (J) units. [Note that a Joule is the SI unit of energy, as further described in Appendix B, and 1...
-
A goldfish is swimming inside a spherical bowl of water having an index of refraction n = 1.333. Suppose the goldfish is 10.5 cm from the will of a bowl of radius 20.0 cm. Neglecting the refraction...
-
The sun's mass is 1.99 x 1030 kg and it has a radius of 6.96 108 m. What is the Sun's gravitational field strength at its surface?
-
Which value describes the fraction of incident x - ray photons removed from a monoenergetic beam per unit distance? A . Half value layer B . mass attenuation coefficient C . linear attenuation...
-
1. What is the electric force between a 4.00 x 10^6 C charge and an 8.00 x 10^6 C change when they are separated by 5.0 m? a. 0.0575 N b. 0.0115 N c. 0.0128 N d. 0.0720 N
-
Solve the equation in the real number system. x4-x3+4x-16x-192=0 Select the correct choice below and fill in any answer boxes in your choice. OA. The real solutions of the equation are x = (Simplify...
-
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
-
How does accounting for available-for-sale securities differ from accounting for trading securities?
-
Using the information for Vision, Inc., in SE4 and SE5, compute the debt to equity ratio, return on equity, and the interest coverage ratio for 2013 and 2014. In 2012 total stockholders equity was...
-
Warmers Dress Shop had net retail sales of $250,000 during the current year. The following additional information was obtained from the companys accounting records: 1. Using the retail method,...
-
Superheated steam available at \(800 \mathrm{psia}\) and \(600^{\circ} \mathrm{F}\) is to be expanded to a pressure of \(150 \mathrm{psia}\) at the rate of \(100,000 \mathrm{lb} / \mathrm{hr}\)....
-
Use a simulator to design a compression system with intercoolers to compress \(600 \mathrm{lb} / \mathrm{hr}\) of a mixture of \(95 \mathrm{~mol} \%\) hydrogen and \(5 \mathrm{~mol} \%\) methane at...
-
A certain bon vivant, wishing to ascertain the cause of his frequent hangovers, conducted the following experiment. On the first night, he drank nothing but whiskey and water; on the second night, he...
Study smarter with the SolutionInn App