Scribd Logo
Upload

Welcome to Scribd!

  • 116 views

    PROBLEM NO. 21 - Pension: Questions

    Uploaded by

    Mark Michael Legaspi
    The document provides information about Jomalig Company's defined benefit pension plan for the years ended December 31, 2010 and January 1, 2010. It includes the current service cost, benefits paid, contribution paid, present value of obligations, unrecognized gains, past service costs, and discount and expected return rates. Based on the information and audit results: 1) The amount to be recognized in the statement of financial position as of January 1, 2010 is P633.3 million. 2) The amount of actuarial gain to be recognized in profit or loss for the year ended December 31, 2010 is P5.76 million. 3) The net pension expense to be recognized in profit or loss for

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    PROBLEM NO. 21 - Pension: Questions

    Uploaded by

    Mark Michael Legaspi
    116 views2 pages
    The document provides information about Jomalig Company's defined benefit pension plan for the years ended December 31, 2010 and January 1, 2010. It includes the current service cost, benefits paid, contribution paid, present value of obligations, unrecognized gains, past service costs, and discount and expected return rates. Based on the information and audit results: 1) The amount to be recognized in the statement of financial position as of January 1, 2010 is P633.3 million. 2) The amount of actuarial gain to be recognized in profit or loss for the year ended December 31, 2010 is P5.76 million. 3) The net pension expense to be recognized in profit or loss for

    Original Description:

    Original Title

    AUDLIAB5

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document provides information about Jomalig Company's defined benefit pension plan for the years ended December 31, 2010 and January 1, 2010. It includes the current service cost, benefits paid, contribution paid, present value of obligations, unrecognized gains, past service costs, and discount and expected return rates. Based on the information and audit results: 1) The amount to be recognized in the statement of financial position as of January 1, 2010 is P633.3 million. 2) The amount of actuarial gain to be recognized in profit or loss for the year ended December 31, 2010 is P5.76 million. 3) The net pension expense to be recognized in profit or loss for

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    116 views2 pages

    PROBLEM NO. 21 - Pension: Questions

    Uploaded by

    Mark Michael Legaspi
    The document provides information about Jomalig Company's defined benefit pension plan for the years ended December 31, 2010 and January 1, 2010. It includes the current service cost, benefits paid, contribution paid, present value of obligations, unrecognized gains, past service costs, and discount and expected return rates. Based on the information and audit results: 1) The amount to be recognized in the statement of financial position as of January 1, 2010 is P633.3 million. 2) The amount of actuarial gain to be recognized in profit or loss for the year ended December 31, 2010 is P5.76 million. 3) The net pension expense to be recognized in profit or loss for

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    PROBLEM NO.

    21 – Pension
    You gathered the following information related to Jomalig Company’s the defined benefit plan
    for the year ended December 31,2010:
    • Current service cost of providing benefits for the year to December 31,2010: P54 million
    • Average remaining working life of employees: 10 years
    • Benefits paid to retired employees in the year: P55.8 million
    • Contribution paid to fund: P37.8 million
    • Present value of obligation to provide benefits: P3,960 million at January 1,2010, and
    P4,500 million at December 31,2010
    • Net cumulative unrecognized gains at January 1, 2010: P453.6 million
    • Past service cost: P207 million. All of these benefits have vested.
    • Discount rates and expected rates of return on plan assets:
    1/1/10 1/1/11
    Discount rate 5% 6%
    Expected rate of return on plan assets 7% 8%

    QUESTIONS:
    Based on the above and the result of your audit, answer the following:
    1.The amount to be recognized in the statement of the financial position as of January 1, 2010 is
    a. P633.3 million c. P957.6 million
    b. P453.6 million d. P455.4 million
    2.The amount of actuarial gain to be recognized in profit or loss for the year ended December
    31,2010 is
    a. P7.20 million c. P3.60 million
    b. P5.76 million d. P 0
    3.The net pension expense to be recognized in profit or loss for the year ended December
    31,2010 is
    a. P188.64 million c. P3.60 million
    b. P183.60 million d. P270.00million

    4.The unrecognized actuarial gain as of December 31,2010 is


    a. P448.2 million c. P604.44 million
    b. P453.6 million d. P 0
    5.The amount to be recognized in the statement of financial position as of December 31,2010 is
    a. P784.44 million c. P180.00 million
    b. P682.20 million d. P455.40 million

    Answers: 1)A; 2)B; 3)A; 4)C; 5)A

    You might also like