FMCC225: FINANCIAL ACCOUNTING3

Assignment:
3. The following information are taken from the actuarial valuation report for an entity’s defined
benefit plan:
Fair value of plan assets, Jan.1 1,400,000.00
Present value of defined benefits obligation, Jan. 1 1,600,000.00
Past service cost (vesting period is 5 years) 200,000.00
Current service cost 400,000.00
Benefits paid to retirees during the year 300,000.00
Net loss on settlement of plan during the year 40,000.00
Actuarial loss during the period 10,000.00
Return on plan assets during the period 90,000.00
Discount rate based on high quality corporate bonds 10%

Requirement: Compute for the defined benefit costs. Determine the amounts recognized in
profit or loss and in other comprehensive income, respectively.

4. The actuarial valuation report for an entity shows the following information:
Present value of defined benefits obligation, Jan. 1 280,000
Current service cost 50,000
Discount Rate 11%
Benefits paid for retirees 120,000
Decrease in PV of Defined Benefit Obligation during the year due
to changes in actuarial assumptions 50,000
Requirement: Compute for the balance of the present value of defined benefit obligation as of
year-end.

5. The actuarial valuation report for an entity shows the following information:
Present value of defined benefits obligation, Jan. 1 130,000
Current service cost 25,000
Discount Rate 12%
Benefits paid for retirees 110,000
Actuarial loss 50,000
Requirement: Compute for the balance of the present value of defined benefit obligation as of
year-end.

6. Information on an entity’s plan assets is shown below:

Present value of plan assets, Jan. 1 360,000
Return on plan assets 80,000
Contribution to the retirement fund during the year. 480,000
Benefits paid to retirees 120,000
Actuarial gain 60,000

Requirement: compute for the balance of the fair value of plan assets as of year-end.
7. Information on an entity’s plan assets is shown below:
Present value of plan assets, Jan. 1 234,000
Return on plan assets 24,000
Contribution to the retirement fund during the year. 120,000
Benefits paid to retirees 79,000
Actuarial Loss 12,000

Requirement: compute for the balance of the fair value of plan assets as of year-end.

8. The following information are taken from the actuarial valuation report for an entity’s defined
benefit plan:
Present value of plan assets, Jan. 1 2,100,000
Present value of defined benefit obligation, Jan. 1 2,400,000
Past service cost (vesting period is 5 years) 300,000
Current service cost 600,000
Benefits paid for retires during the year 450,000
Net gain on settlement of plan during the year 60,000
Actuarial gain during the period 15,000
Return on plan assets during the year 270,000
Discount rate based on highly quality corporate bonds 12%

Requirement: compute for the defined benefit cost. Determine the amounts recognized in
profit or loss and in other comprehensive income respectively.