Watermark Company had a net defined benefit asset of P1,000,000 on its defined benefit plan as...
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Watermark Company had a net defined benefit asset of P1,000,000 on its defined benefit plan as of January 1, 2020. The present value of future reduction in contributions at January 1, 2020 was P300,000. The company recognized actuarial loss of P200,000 and retirement benefit expense of P400,000 during the year. Watermark also contributed P500,000 to the plan. The asset ceiling as of December 31, 2020 is P400,000. The relevant discount rate is 10%. Question 1: How much is the adjustment to interest cost due to the changes in the effect of asset ceiling during 2020? Refer to Watermark Company. Question 2: How much pension asset should be recognized at the end of December 31, 2020? Watermark Company had a net defined benefit asset of P1,000,000 on its defined benefit plan as of January 1, 2020. The present value of future reduction in contributions at January 1, 2020 was P300,000. The company recognized actuarial loss of P200,000 and retirement benefit expense of P400,000 during the year. Watermark also contributed P500,000 to the plan. The asset ceiling as of December 31, 2020 is P400,000. The relevant discount rate is 10%. Question 1: How much is the adjustment to interest cost due to the changes in the effect of asset ceiling during 2020? Refer to Watermark Company. Question 2: How much pension asset should be recognized at the end of December 31, 2020?
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Defined benefit plan on 1st Jan 2020 P1000000 Present value of future reduction in contributions P30... View the full answer
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
Posted Date:
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