Newton Inc offers its employees a defined benefit pension plan. Newton Inc íepoíts undeí US GAAP. It
Question:
Newton Inc offers its employees a defined benefit pension plan. Newton Inc íepoíts undeí US GAAP. It records actual gains and losses in Other Compíehensive Income (OCI) and amoítizes these amounts over the average remaining service life of its employees when they exceed a threshold. Newton Inc did not record any past service cost in fiscal year 2021.
Below you can find exceípts from Newton’s pension footnotes:
2020 | 2021 | |
Seívice cost | £3,300 | £3,500 |
Interest cost | £1,600 | £1,750 |
Expected return on plan assets | £2,100 | £1,900 |
Actual return on plan assets | £1,900 | £2,000 |
Contíibutions to defined benefits plan | £2,000 | £2,100 |
Benefits paid | £1,250 | £1,350 |
Pension liability | £35,000 | £42,500 |
Accumulated OCI losses related to defined benefit plans | £4,500 | £5,100 |
Calculate your best appíoximation of the net pension expenses recorded in P&L íelated to defined benefit plans in the fiscal year 2021?
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson