Interest cost included in the net pension cost recognized by an employer sponsoring a defined benefit pension plan represents the:*1 pointAmortization of the discount on unrecognized prior service costsShortage between the expected and actual returns on plan assetsIncrease in the fair value of plan assets due to the passage of timeIncrease in the defined benefit obligation due to the passage of time

A company starts a defined benefit pension plan on Jan 1 2020. The service cost is $300,000 each year while funding $200,000 per year (with payments made each Dec 31). Interest on the PBO is 12 percent while the actual and expected income on plan assets is 10 percent per year. What amount of pension expense should the company report for 2021

Under this plan, both the employer and employee share in the retirement benefit cost.*1 pointContributory planNon-contributory planFunded planUnfunded plan

The report of defined benefit plan shall contain: I. A statement showing net assets available for benefits, the present value of promised benefit and the resulting excess or deficit. II. A statement of net assets available for benefits including a note disclosing the present value of proised benefits  *1 pointI onlyII onlyboth I & IIeither I & II

Question 5On 31 December 20X2, the present value of defined benefit obligation and  fair value of defined benefit asset are RM700 million and RM750 million respectively. The future economic benefit of the plan asset is RM65 million. The retirement benefit at 31 December 20X2 isAnswer :Net defined obligation of RM50 million   Net defined asset of RM50 million   Net defined obligation of RM65 million  Net defined asset of RM65 million

Remeasurements of defined benefit plan include which of the following?*1 pointThe difference between actual return and interest income on plan assetsActuarial gain or loss on defined benefit obligationChange in the effect of asset ceiling less the interest expense on the beginning of asset ceiling.All of these are included in the remeasurement of defined benefit plan