Valjean Company has decided to improve its defined benefit pension scheme. The benefit payable will be determined by reference to 35 years’ service rather than 40 years’ service. As a result, the defined benefit pension liability will increase by P2,000,000. The average remaining service livers of the employees is 10 years. How should the increase in the pension liability by P2,000,000 be treated in the financial statements?*1 pointThe past service cost should be charged against the retained earnings.The past service cost should be charged against profit or loss for the year.The past service cost should be spread over the remaining working lives of the employees.The past service cost should not be recognized.

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

PAS 26 shall be applied to which of the following?*1 pointThe costs of entities of employee of employee retirement benefitsReports to individuals on their future retirement benefitsThe financial statements relating to actuarial businessThe general financial reports of pension scheme

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

The following information pertains to Gali Co.'s defined benefit pension plan for the current yearFair value of plan assets, beginning of year $350,000Fair value of plan assets, end of year 525,000Employer contributions 110,000Benefits paid 85,000In computing net periodic pension cost, what amount should Gali use as actual return on plan assets

-An entity issued 100 shares each to its 1,000 employees subject to service condition of next 2 years. Grant date fair value of the share is INR 195 each. At end of 1st year, there is an expectation that 97% of the total 1,000 employees will remain in service till the end of vesting period. However, at the end of 2nd year the expected employees to remain in service would be 91% out of the total 1,000 employees. Calculate expense for the year 1 & 2.