Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for2023:Opening balance, DBOOpening balance, plan assetsService costEmployer contributions paid evenly through 2023Applicable interest or discount rateActual return on plan assetsActuarial loss due to change in actuarial assumptions$188,000comprehensive income of $179,00052,00069,00010%22,50012,500Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company'sshareholders' equity.-2,400 , for a total reduction in shareholders' equity of $11,700

Pension is defined as the fund collected from the taxpayer or employee during his term of…

Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 $188,000 179,000 52,000 69,000

Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for 2023: Opening balance, DBO Opening balance, plan assets Service cost Employer contributions paid evenly through 2023 $188,000 179,000 52,000 69,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter19: Accounting For Post Retirement Benefits

Section: Chapter Questions

Problem 5E

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Concept explainers

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.

Question

Sunland Corporation is a private company with a defined benefit pension plan. The following information is available for Sunland for
2023:
Opening balance, DBO
Opening balance, plan assets
Service cost
Employer contributions paid evenly through 2023
Applicable interest or discount rate
Actual return on plan assets
Actuarial loss due to change in actuarial assumptions
$188,000
comprehensive income of $
179,000
52,000
69,000
10%
22,500
12,500
Assuming that Sunland follows IFRS, determine the 2023 effect of the pension plan on defined benefit expense and the company's
shareholders' equity.
-2,400 , for a total reduction in shareholders' equity of $
11,700

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Accounting for Employee Compensations and Benefits

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