Jessie Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following
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Question:
Jessie Co. sponsors a defined benefit pension plan. For the current year ended December 31, the following information relevant to the plan has been accumulated:
Defined benefit obligation, 1/1 | P10,000,000 |
Fair value of plan assets, 1/1 | 9,000,000 |
Current service cost | 3,000,000 |
Gain on settlement | 500,000 |
Actual return on plan assets | 630,000 |
Increase in defined benefit obligation due to changes in actuarial assumptions | 800,000 |
Market yield on high quality corporate bonds | 6% |
Yield on bonds issued by the entity | 8% |
Expected return on plan assets | 9% |
Calculate the amount that the entity would recognize in profit or loss for the year in accordance with the revised PAS 19
Group of answer choices
- P2,590,000
- P2,560,000
- P2,570,000
- P2,580,000
Expert Answer:
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