ome years ago, Junior Ltd established a defined benefit pension plan for its employees. The company has since introduced a defined contribution plan, which all new staff join when commencing employment with Junior Ltd. Although the defined benefit plan is now closed to new recruits, the fund continues to provide for employees who have been with the company for a long time. The following actuarial report has been received for the defined benefit plan: Requirements: a) Determine the surplus or deficit of Junior Ltd.’s defined benefit plan at 31 December 2018. b) Determine the net defined benefit asset or liability that should be recognised by Maple Ltd at 31 December 2018. c) Calculate the net interest and the return on plan assets for 20
Some years ago, Junior Ltd established a defined benefit pension plan for its employees. The company has since introduced a defined contribution plan, which all new staff join when commencing employment with Junior Ltd. Although the defined benefit plan is now closed to new recruits, the fund continues to provide for employees who have been with the company for a long time. The following actuarial report has been received for the defined benefit plan:
Requirements:
a) Determine the surplus or deficit of Junior Ltd.’s defined benefit plan at 31 December 2018.
b) Determine the net defined benefit asset or liability that should be recognised by Maple Ltd at 31 December 2018.
c) Calculate the net interest and the return on plan assets for 2018.
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c)Calculate the net interest and the return on plan assets for 2018
d) Prepare a pension worksheet for the period ended December 31 2018
e) Prepare the
books of Junior Ltd for the year ended December 31 2018
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