(Post-Retirement Benefit Expense, Surplus or Deficit, and Reconciliation)
Rosek Inc. provides the following information related to its post-retirement health-care benefits for the year
2020:
Defined post-retirement benefit obligation at January 1, 2020
$110,000
Plan assets, January 1, 2020 42,000
Actual return on plan assets, 2020 3,000
Discount rate 10%
Service cost, 2020 57,000
Plan funding during 2020 22,000
Payments from plan to retirees during 2020 6,000
Actuarial loss on defined post-retirement benefit obligation,
2020 (end of year)
31,000
Rosek Inc. follows IFRS.
Instructions
a. Calculate the post-retirement benefit expense for 2020.
b. Calculate the post-retirement benefit remeasurement gain or loss—other comprehensive income (OCI) for
2020.
c. Determine the December 31, 2020 balance of the plan assets, the defined post-retirement benefit
obligation, and the plan surplus or deficit.
d. Determine the balance of the net post-retirement benefit liability/asset account on the December 31, 2020
SFP.
e. Reconcile the plan surplus or deficit with the amount reported on the SFP at December 31, 2020.
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(Post-Retirement Benefit Expense, Surplus or Deficit, and Reconciliation)
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