Student Notes, Pensions(17)

Gains and losses gains and losses gains and losses

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Unformatted text preview: Gains and Losses Gains and Losses Gains and Losses Gains and Losses Chapter 20-21 Corridor Amortization FAS B inve nte d the corridor approach fo r a m o rtizing the unre c o g nize d ne t g a in o r lo s s a c c um ula te d b a la nc e whe n it g e ts to o la rg e de fine d a s 10% o f the la rg e r o f the b e g inning b a la nc e s o f the projected benefit obligation o r the m a rke t-re la te d va lue o f the plan assets . Any unre c o g nize d ne t g a in o r lo s s b a la nc e a b o ve the 10% m us t b e a m o rtize d o ve r the a ve ra g e re m a ining s e rvic e life o f a ll a c tive e m plo ye e s . Gains/ Losses Gains/ Losses Gains/ Losses Gains/ Losses Chapter 20-22 Hunt C o rpo ra tio n ha d a pro je c te d b e ne fit o b lig a tio n o f $3,100,000 a nd pla n a s s e ts o f $3,300,000 a t Ja nua ry 1, 2008. Hunt’s unre c o g nize d ne t pe ns io n lo s s wa s $475,000 a t tha t tim e . The a ve ra g e re m a ining s e rvic e pe rio d o f Hunt’s e m plo ye e s is 7.5 ye a rs . Instructions Instructions C o m pute Hunt’s a m o rtiza tio n o f the pe ns io n lo s s . Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization Chapter 20-23 C o m pute Hunt’s a m o rtiza tio n o f the lo s s . Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization Example of gain or loss amortization ÷ Chapter 20-24 Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Katie Day Company adopts acceptable accounting for its defined benefit pension plan on January 1, 2011, with the following beginning balances: plan assets $200,000; projected benefit obligation $200,000. Other data are as follows. 2011 2012 2013 Annual service cost 16,000 $ 19,000 $ 26,000 $ Settlement rate and expected rate of return 10% 10% 10% Actual return on plan assets 17,000 21,900 24,000 Annual f unding (contributions) 16,000 40,000 48,000 Benef its paid 14,000 16,400 21,000 Unrecognized prior service cost (plan amended, 1/ 1/ 12) 160,000 Amortization of unrecognized prior service cost 54,400 41,600 Change in actuarial assumptions, Dec. 31 PBO 520,000 Average remaining service lif e 15 years 15 years 15 years Chapter 20-25 GENERAL JOURNAL ENTRI ES MEMO RECORD Pension Projected Pension Asset / Benefit Plan I tems Expense Cash PSC Gain/ Loss Liability Obligation Assets Bal. Jan. 1, 2011 Service cost I nterest cost Actual return Unexpected loss Cont ributions Benefits paid Journal entry Accumulated OCI , Dec. 31, 2010 Dec. 31, 2011 OCI Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Pension Work Sheet for 2011 Chapter 20-26 Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Using a Pension Work Sheet Pension Journal Entry for 2011 Chapter...
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Gains and Losses Gains and Losses Gains and Losses Gains...

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