Student1: Malakhai Jeu H.

Cunanan Date: February 11, 2023

Student2: Katere Claire P. Manlangit Schedule: TTh 7:30 - 9:00

AC2201 ASSIGNMENT NO. 2

PROBLEM NO. 1
Mermade Corp. adopts the IFRS for its defined benefit retirement plan on January 1, 2021, with
the following beginning balances:

● Fair Value of Plan Assets are Php 200,000.00

● Defined Benefit Obligation is Php is 250,000.00

The following are other information relating to the years 2021, 2022, and 2023:

2023 2022 2021

Current service cost P26,000.0 P P

0 19,000.00 16,000.00

Discount rate 10% 10% 10%

Actual return on plan assets 24,000.00 22,000.00 20,000.00

Contributions to the plan 48,000.00 40,000.00 16,000.00

Benefits paid to retiree 21,000.00 16,400.00 14,000.00

Other information:
1. The plan was amended on January 1, 2022 which resulted to a Past Service Cost of Php
160,000.00
2. On December 31, 2023, there were changes in the actuarial assumptions that
establishes a defined benefit obligation as of December 31, 2023 in the amount of Php
520,000.00.
Mermade Corp.
Pension Worksheet 2021
General Journal Entries Memo Entries
Pension Defined Fair Value
Annual pension asset/liabilit benefit of Plan
Items expense Cash OCI y (net) obligation Assets
Balance, beg. 50,000 250,000 Cr 200,000 Dr
Past service cost  
Adjusted
balance  
Current Service
Cost  
Interest expense  
Interest revenue  
Contributions  
Benefits  
Asset gain (loss)  
Liability gain
(loss)        
Journal entry        
Balance end      
Required: For each year (2021, 2022, and 2023), prepare a worksheet presenting the balances
and the activities of the pension. Indicate in the worksheet whether the amount is a
Debit/Debited (Dr) or a Credit/Credited (Cr). (50 points)
A partial worksheet for 2021 (with beginning balances) is shown below, for your reference:*
 * If applicable, you may revise (e.g. add items, columns, rows, etc) accordingly
Write your answers after this line.

Mermade Corp.
Pension Worksheet 2021
General Journal Entries Memo Entries
Annual Pension Defined Fair Value
pension asset/liability benefit of Plan
Items expense Cash OCI (net) obligation Assets
Balance, beg. 50,000 Cr 250,000 Cr 200,000 Dr
Past service cost  
Adjusted balance  
Current Service Cost 16,000 Dr  16,000 Cr
Interest expense 25,000 Dr  25,000 Cr
Interest revenue 20,000 Cr  20,000 Dr
Contributions 16,000 Cr   16,000 Dr
Benefits  14,000 Dr 14,000 Cr
Asset gain (loss)  
Liability gain (loss)        
Journal entry  21,000 Dr  16,000 Cr   5,000 Cr  
Balance end  55,000 Cr  277,000 Cr 222,000 Dr 

*Beginning balance: 250,000 – 200,000 = 50,000.00

*Interest expense: 250,000 x 10% = 25,000
*Interest revenue: 200,000 x 10% = 20,000

Mermade Corp.
Pension Worksheet 2022
General Journal Entries Memo Entries
Annual Pension Defined Fair Value
pension asset/liability benefit of Plan
Items expense Cash OCI (net) obligation Assets
Balance, beg. 55,000 Cr 277,000 Cr 222,000 Dr
Past service cost 160,000 Dr 160,000 Cr 
Adjusted balance 437,000 Cr  222,000 Dr
Current Service
Cost 19,000 Dr  19,000 Cr
Interest expense  43,700 Dr  43,700 Cr
Interest revenue 22,200 Cr 22,200 Dr
Contributions 40,000 Cr   40,000 Dr
Benefits 16,400 Dr 16,400 Cr
Asset gain (loss) 200 Dr   200 Cr
Liability gain (loss)        
Journal entry 200,500 Dr  40,000 Cr  200 Dr 160,700 Cr  
Balance end 215,700 Cr 483,300 Cr 267,600 Dr 

*Beginning Balance: 277,000 – 222,000 = 55,000

*Interest expense: 437,000 x 10% = 43,700
*Interest revenue: 222,000 x 10% = 22,200
*Asset gain (loss):
Actual Return on Plant Assets 22,000
Interest revenue on FVPA 22,200
Asset gain 200
 Mermade Corp.
Pension Worksheet 2023
General Journal Entries Memo Entries
Annual Pension Defined Fair Value
pension asset/liability benefit of Plan
Items expense Cash OCI (net) obligation Assets
Balance, beg. 215,700 Cr 483,300 Cr 267,600 Dr 
Past service cost
Adjusted balance
Current Service
Cost 26,000 Dr 26,000 Cr
Interest expense  48,330 Dr  48,330 Cr
Interest revenue 26,760 Cr 26,760 Dr
Contributions 48,000 Cr   48,000 Dr
Benefits 21,000 Dr 21,000 Cr
Asset gain (loss) 2,760 Dr   2,760 Cr
Liability gain (loss)     16,630 Cr   16,630 Dr 
Journal entry 47,570 Dr 48,000 Cr 13,870 Cr 14,300 Dr  
Balance end 201,400 Cr 520,000 Cr 318,600 Dr 

*Beginning Balance: 483,300 – 267,600 = 215,700

*Interest expense: 483,300 x 10% = 48,330
*Interest revenue: 267,600 x 10% = 26,760
*Asset gain (loss):
Actual Return on Plant Assets 24,000
Interest revenue on FVPA 26,760
Asset gain 2,760
*Liability gain (loss):
Balance, end 520,000
Balance, beg. (483,300)
Current service cost (26,000)
Interest expense (48,330)
Benefits 21,000
Total 16,630