The following is information related to Merbah Bhd's employee benefits. for the year ending 31 December 2023:
Question:
The following is information related to Merbah Bhd's employee benefits. for the year ending 31 December 2023:
1. Salary
On December 31, 2023, Merbah Bhd. has paid net wages to its employees amounting to RM1 million after deducting income tax of RM400,000. Merbah Bhd. will submit the income tax payment to the Inland Revenue Board on January 5, 2024.
2. Defined retirement benefit plan.
On 1 January 2023, the fair value of plan assets is estimated at RM720 million and the current value plan liability is RM510 million. The ceiling value of plan assets is set at RM250 million. Rates The high-quality bond discount is 4%. The following is information related to the plan for year ending 31 December 2023:
RM(Millions)
Current service cost 135
Cash contribution to the plan 255
Payment of benefits to retirees 31.5
On December 31, 2023, an actuarial evaluation of this benefit plan was made. Value the fair value of the plan's assets and the present value of the plan's liabilities on this date is determined at RM1.005 billion and RM784.5 million respectively.
Be required:
a) For the retirement benefit plan determined for the year 2023, determine;
i) Expenditure of retirement benefits
ii) Profit or loss plan liability
iii) Profit or loss of plan assets
b) Prepare journal entries to record all transactions related to employee benefits Merbah Bhd. for the year ending December 31, 2021.
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield