Defined benefit plan without plan assets
Entity E stipulated a defined benefit plan with its employees:
|
01 |
02 |
|
|
Actual obligation as at Jan 01 |
100 |
130 |
|
Current service cost |
14 |
20 |
|
Interest cost |
10 |
13 |
|
Benefits paid |
8 |
11 |
|
Actual obligation as at Dec 31 |
130 |
140 |
Posting status:
There have not yet been any entries.
Required
Prepare any necessary entries in E”s financial statements as at Dec 31 for the years 01 and 02. E recognizes actuarial gains and losses:
(a) according to the corridor method (IAS 19.92–19.93) and under the assumption that the cumulative unrecognized actuarial losses as at Jan 01, 01 are CU 20. The expected average remaining working life of the employees is 10 years.
(b) entirely immediately in profit or loss (IAS 19.93 and 19.95).
(c) entirely immediately in other comprehensive income (IAS 19.93A–19.93D).
Also determine the carrying amount of the liability for each of these versions as at Jan 01, 01, Dec 31, 01, and Dec 31, 02.