Compute for the net defined benefit cost

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Reference no: EM132953731

Question: The following information are taken from the actuarial valuation report for an entity's defined benefit plan:

Fair value of plan asset, Jan. 1 1,400,00

Present value of defined obligation, Jan. 1,600,000

Past service cost, 5 year vesting 200,000

Current Service Cost 400,000

Benefits paid to retirees during the year 300,000

Net loss on settlement of plan during the year 40,000

Actuarial gain 10,000

Return on plan assets during the period 90,000

Discount rate based on high quality bonds 10%

a. Compute for the net defined benefit cost.

b. Compute for the amounts recognized in profit or loss and in other comprehensive income.

Reference no: EM132953731

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