Charlton Company provided the following information concerning a defined benefit plan at the beginning of current year prior to the adoption of revised PAS 19: Debit Credit Fair value of plan assets 4,750,000 Unamortized past service cost 1,250,000 Projected benefit obligation 5,500,000 Unrecognized actuarial gain 850,000 The transactions for the current year relating to the defined benefit plan are as follows: Current service cost 925,000 Discount rate 6% Actual return on plan assets 485,000 Contribution to the plan 1,350,000 Benefits paid to retirees 995,000 Increase in projected benefit obligation due to changes in actuarial assumptions 150,000 Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined benefit plan. REQUIRED: Prepare journal entry to recognize the transitional effect of adopting revised PAS 19.
Charlton Company provided the following information concerning a defined benefit plan at the beginning of
current year prior to the adoption of revised PAS 19:
Debit Credit
Fair value of plan assets 4,750,000
Unamortized past service cost 1,250,000
Projected benefit obligation 5,500,000
Unrecognized actuarial gain 850,000
The transactions for the current year relating to the defined benefit plan are as follows:
Current service cost 925,000
Discount
Actual return
Contribution to the plan 1,350,000
Benefits paid to retirees 995,000
Increase in projected benefit obligation due to changes in actuarial assumptions 150,000
Effective in the current year, the entity has applied the provisions of revised PAS 19 in relation to the defined
benefit plan.
REQUIRED:
Prepare
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