The following information is in regards to Crane Corp.’s defined benefit pension plan. Defined benefit obligation,...
The following information is in regards to Crane Corp.’s defined
benefit pension plan.
| Defined benefit obligation, 1/1/17 (before amendment) | $250,000 | ||
| Plan assets, 1/1/17 | 168,000 | ||
| Discount rate | 10% | ||
| Annual pension service cost | 15,000 | ||
| Actual return on plan assets | 8,400 |
On January 1, 2017, the company amended its pension plan, which
resulted in a reduction in prior service benefits for current
employees. The present value of the reduced benefits is
$34,000.
1. Calculate the pension expense that will be reported in net income for 2017 if Crane applies IFRS.
Pension Benefit $???
2. Calculate the pension expense that will be reported in net income for 2017 if Crane applies ASPE.
Pension Benefit $???
Homework Answers
1) Pension expense under in net income for 2017 iif IFRS is applicable
Annual pension service cost = $15,000
+ Interest cost ( calculated on
defined benefit obligation) = Nil
+ Actual return on plan assets = $8,400
+ Ammortization of prior
service costs = $34,000
+ Gain or loss = Nil
Net periodic pension expense = $57,400
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The following information is in regards to Crane Corp.’s defined
benefit pension plan.
Defined benefit obligation,...
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