The following information was obtained from the financial statements of X Inc.

Defined Benefit Plan Obligations

Pension Benefits

                                                                                              2020……………………..2019

Defined Benefit Obligation(DBO):

Balance, beginning of year…………………………………………$40,032…………………..42,370

Current Service Cost……………………………………………………  864………………….    1,126

Interest Cost…………………………………………………………… 2,344…………………...   2,255

Benefits Paid……………………………………………………………(3,198)………………….. (2,881)

Actuarial Gains………………………………………………………... (3,339)………………….. (2,838)

Balance, end of year………………………………………………….$36,703……………….….$40,032

Defined Benefit Plan Assets

Pension Benefits

                                                                                               2020…………..…………2019

Balance, beginning of year…………………………………………$75,891………………….$90,828

Expected return on Plan Assets……………………………………. 5,599…………………..   6,723

Employee contributions………………………………………………. 180…………………..       197

Benefits Paid……………………………………………………………(3,198)………………….  (2,881)

Actuarial Losses…………………………………………………………(745)………………….(18,976)

Balance, end of year…………………………………………………….$77,727………………..$75,891

Required:-

(a)    Calculate pension expense for 2020

(b)    Explain the following:-

1. The funded status of the pension plan in 2020
2. Contributory and non-contributory pension plans

The difference in accounting for actuarial gains and losses and past service costs under IFRS and ASPE.

Answer rating: 100% (QA)

A defined benefit plan is a type of postemploymentbenefit that guarantees a pension to employees in retirement The plan rules state the postretirement compensation which is often a percentage of the r... View the full answer