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The following information relates to RED Co's postretirement health care benefits for the year 2019: Defined...

The following information relates to RED Co's postretirement health care benefits for the year 2019:

Defined post-retirement benefit obligation at January 1, 2019: $100,000

Plan assets, January 1, 2019: 50,000

Actual return on plan assets, 2019: 5,000

Service cost, 2019: 60,000

Plan funding during 2019: 20,000

Payments from plan to retirees during 2019: 8,000

Actuarial loss on defined post-retirement benefit obligation-2019 (end of year): 30,000

ABC Inc. follows IFRS. Discount rate is 10%

(a) Calculate the post-retirement benefit expense for 2019.

(b) Calculate the post-retirement benefit remeasurement gain or loss- other comprehensive income (OCI) for 2019.

(c) Determine the December 31, 2019 balance of the plan assets, the defined post-retirement benefit obligation, and the plan surplus or deficit.

(d) Determine the balance of the net post-retirement benefit liability/asset account on the December 31, 2019statement of financial position.

(e) Reconcile the plan surplus or deficit with the amount reported on the statement of financial position at December 31, 2019.

Solutions

Expert Solution

IAS 19R has eliminated corridor approach by requiring immediate recognition actuarial gains and losses through OCI

ekkarill92 answered 1 week ago
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