Chapter 19 E19-14

(Post-retirement Benefit Expense, Surplus or Deficit, and Reconciliation) Rosek Inc. Provides the following information related to its post-retirement health-care benefits for the year 2020:

Defined post-retirement benefit obligation at January 1, 2020 $110,000

Plan assets, January 1, 2020 $42,000

Actual Return on plan assets, 2020 $3,000

Discount rate 10%

Service cost, 2020 $57,000

Plan funding during 2020 $22,000

Payments from plan to retirees during 2020 $6,000

Actuarial loss on defined post-retirement benefit obligation, 2020 (end of the year) $31,000

Rosek Inc. follows IFRS.

Instructions:

1. Calculate the post-retirement benefit expense for 2020.
2. Calculate the post-retirement benefit remeasurement gain or loss-other comprehensive income (OCI) for 2020
3. Determine the December 31, 2020 balance of the plan assets, the defined post-retirement benefit obligation, and the plan surplus deficit
4. Determine the balance of the net postretirement benefit liability/asset account on December 31, 2020, SFP.
5. Reconcile the plan surplus or deficit with the amount reported on the SFP on December 31, 2020