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16 Cards in this Set
- Front
- Back
Continuity schedule for DBO under IFRS |
DBO, opening bal plus: Interest cost = (DBO opening + past service costs) x interest rate plus: Current service cost less: Benefits paid to retirees plus: Past service costs = cost of plan amendment in yr DBO, ending bal |
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Return on plan assets = |
Ending - Beg bal of asset - contributions + benefits paid |
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JE for pmt to trustee on pension when employees have chosen to match |
Dr: Pension Expense Dr: Employee Pension Contributions Payable Cr: Cash |
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Calc for pension expense |
= Current service cost + Net Interest/Finance + Remeasurement gain on assets + Plan service costs (historical or from before) |
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Net interest/finance |
= (total beg DBO + Past service cost - Plan Assets beg) x interest rate |
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Remeasurement gain on assets |
= Actual return - (rate x plan assets beg) |
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JE to record pension expense |
Dr: Pension Expense Cr: Net Defined Benefit Liability/Asset |
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JE to record contribution |
Dr: Net Defined Benefit Liability/Asset Cr: Cash |
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Net defined benefit liability/asset |
= opening bal + pension exp recorded - funding contributions if number is positive (liability) if balance is negative (asset) |
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Plan's surplus/deficit |
= DBO ending - Plan assets ending if negative (deficit = net defined benefit liability) if positive (surplus = net defined benefit asset) or if ending is unavail (beg for both works too) |
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Info to be disclosed on FS |
1. any expenses not recurring in nature (ie. past service costs & diff btwn actual & return calc based on rate in net interest/finance calc) 2. amendments |
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Net defined benefit liability/asset (Cr. bal = liab, Dr. = asset) |
Plan surplus = (plan assets - DBO) - Pension expense recognized + Funding contribution |
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Pension worksheet |
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Plan deficit |
DBO > Plan Assets Therefore has Pension Liability in Cr |
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IFRS vs ASPE disclosures |
1. IFRS loss in remeasurement placed in OCI 2. past service cost = remeasurement in ASPE -> need to be presented seperately on IS or disclosed in notes of FS |
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Reconciliation schedule |
DBO FV of Plan Assets NDBL/A |