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
P26,000.00
10%
24,000.00
48,000.00
21,000.00
Current service cost
Discount rate
Actual return on plan assets
Contributions to the plan
Benefits paid to retiree
2022
P 19,000.00
10%
22,000.00
40,000.00
16,400.00
2021
P 16,000.00
10%
20,000.00
16,000.00
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
Items
Balance, beg.
Past service cost
Adjusted balance
Current Service
Cost
Interest expense
Interest revenue
Contributions
Benefits
Asset gain (loss)
Liability gain (loss)
Journal entry
Annual
pension
expense
Cash
OCI
Memo Entries
Pension
asset/liabilit
y (net)
Defined
benefit
obligation
250,000 Cr
Fair Value of
Plan Assets
200,000 Dr
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.