Al Salamia Company has a well-established and well-articulated pension plan covering 240 employees under pension plan of
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Question:
Al Salamia Company has a well-established and well-articulated pension plan covering 240 employees under pension plan of zero contribution. Al Salamia has granted DK 960,000 of prior service cost to its employees. Employees are grouped into four segments as per the expected year of retirement:
Group | No. of Employees | % | Expected Date of Retirement |
A | 60 | 25 | 2020 |
B | 40 | 17 | 2021 |
C | 50 | 21 | 2022 |
D | 90 | 37 | 2023 |
240 |
Required:
As a pension analyst, you have been requested to amortize the prior service cost throughout the pension plan horizon (2020 – 2023).
Related Book For
Intermediate Accounting
ISBN: 978-0324659139
11th edition
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
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