Question

Sunland Inc. provides the following information related to its post-retirement health-care benefits for the year 2020:

Defined post–retirement benefit obligation at January 1, 2020		$114,000
Plan assets, January 1, 2020		45,800
Actual return on plan assets, 2020		4,000
Discount rate		11%
Service cost, 2020		56,200
Plan funding during 2020		22,200
Payments from plan to retirees during 2020		6,200
Actuarial loss on defined post-retirement benefit obligation, 2020 (end of year)		26,300

Sunland Inc. follows IFRS.

Calculate the post–retirement benefit expense for 2020.

Post–retirement benefit expense 2020

$enter the Post–retirement benefit expense in dollars

  

  

Calculate the post-retirement benefit remeasurement gain or loss—other comprehensive income (OCI) for 2020.

Post-retirement benefit remeasurement select an option                                                                      lossgain (OCI)

$enter the Post-retirement benefit remeasurement in dollars

  

  

Determine the December 31, 2020 balance of the plan assets, defined post-retirement benefit obligation, and the plan surplus or deficit.

Plan assets, 12/31/20		$enter a dollar amount
Defined post-retirement benefit obligation		$enter a dollar amount
Plan select an option                                                                      deficitsurplus		$enter a dollar amount

  

  

Determine the balance of the net post–retirement benefit liability/asset account on the December 31, 2020 SFP.

Net post–retirement benefit select an option                                                                      assetliability

$enter a dollar amount

  

  

Is there a need to reconcile the plan surplus or deficit with the amount reported on the SFP at December 31, 2020?

select an option                                                                      NoYes

Answer 1

Answer Page No 0 O Porf retirement benebit expense 2020 uuuuu Poof retirement benefit exepense 2020 Service cost + Net interest | finance cost $56,000+ 14000 –45800)x9% = 56200 + 7500 $63,702 Post - retirement benebit remeasurment gain or loss Post - retirement benebil remeasurement loss CocI) Aclü al return on plan assets + actual cons on obligation [(45800X117) – 4000] + 26300 1038 + 26300 $27338 3 Plan assels 12/31/20 = Plan assets 11/20 + aclüal oreliurn on plan assets + Contribution benefit paid out 45800 + 4000 + 02,200 – 6200 2 $65800

Page.no @ defined poof - retirement benebit obligation wal20 debined poef retirement obligation ilil20 + interest cost + current service cost + Aclüarial loss – benefits paid $ 14,000 + (114000 x117) + 56000 +26300 –6200 $ 202,840 Plan debicit (2/31/20 <-202840 + 65800 ($137,040) um Net post retirement benebit liability) asset 12/31/20 Net pouf retirement benebit Liability /t/20 = 114000 - 45800 $68200 Poof retirement benefit expense 2020 $63,702 Retirement lors (oc) = $21338 Contribution (funding) during 8020 = $22,200 Net porf retirement benefit liabilily 10/31/20 68200 +63702 +27338-22200 $ 137,040 6 there is no need to reconcile these two have the same balance because the inputs that affect the balance of each are identical and same.