Journal Entry Headers:

Section A:

1. Record the entry for the past service cost as per IFRS.
2. Record the entry for the deferred past service cost as per U.S. GAAP.
3. Record the entry for the past service cost as per U.S. GAAP.
4. Record the entry for the past service cost as per IFRS.
5. Record the entry for the past service cost as per U.S. GAAP.
6. Record the entry for the past service cost as per IFRS.

Section B:

1. Record the entry for the deferred past service cost which was recognized in Profit and Loss account as per IFRS due to conversion to U.S. GAAP.
2. Record the entry for the deferred past service cost which was recognized in prior year Profit and Loss account as per IFRS due to conversion to U.S. GAAP.
3. Record the entry for the past service cost as per U.S. GAAP.

On January 1, 2020, Xiamen Company made amendments to its defined benefit pension plan that resulted in 64,000 yuan of past service cost. The plan has 5,230 active employees with an average expected remaining working life of 16 years. There currently are no retirees under the plan. Assume that Xiamen Company is a foreign company using IFRS and is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes. Required: a. Prepare journal entries for the past service cost for the years ending December 31, 2020, and December 31, 2021, under (1) IFRS and (2) U.S. GAAP. b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2020, and December 31, 2021, conversion worksheets to convert IFRS balances to U.S. GAAP. Complete this question by entering your answers in the tabs below. Required A Required B Journal entry worksheet Record the entry for the past service cost as per IFRS. Note: Enter debits before credits. General Journal Debit Credit Date 01/01/2020 Record entry Clear entry View general journal