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n. For the current year ended December 31, the following information relevant
to the plan has been accumulated:
Defined benefit obligation, 1/1 P10,000,000
Fair value of plan assets, 1/1 9,000,000
Current service cost 3,000,000
Gain on settlement 500,000
Actual return on plan assets 630,000
Increase in defined benefit obligation due to changes in 800,000
actuarial assumptions
Market yield on high corporate bonds 6%
Yield on bonds issued by the entity 8%
Expected return on plan assets 9%
Calculate the amount that Jessie Co. would recognize in profit or loss for the year in accordance with the revised PAS 19.
A. P2,560,000 B. P2,570,000 C. 2,580,000 D. P2,590,000
In relation to the asset ceiling, the amount that the entity would recognize in other comprehensive income for the year 2020
should be
A. P1,000,000 B. P960,000 C. P600,000 D. P560,000
Use the following information for the next four (4) questions:
During the year, the entity recognized current service cost P2,000,000, actual return on plan assets P400,000, and contribution to the
plan P4,550,000 and benefits paid P1,950,000. The discount rate is 10%.
Use the following information for the next two (2) questions:
An entity is committed to close a factory in 10 months and shall terminate the employment of all the remaining employees of the
factory. Under the termination plan, an employee leaving before closure of factory shall receive on termination date a cash
payment of P20,000. However, an employee that renders service until closure of the factory shall receive P60,000. There are
120 employees at the factory. The entity expects 100 employees to leave before closure and 20 employees to render service until
closure.