Question 1

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:  Jamieson's balance sheet as per IFRS for Year 1 would show an accumulated other comprehensive income (AOCI)balance of:

Accepted Answer

The AOCI balance for a defined benefit plan is calculated as the difference between the fair value of the plan's assets and the present value of its projected benefit obligation. In Year 1, the fair value of the plan's assets was $200,000 and its projected benefit obligation was $197,300, resulting in an AOCI balance of $2,700 (dr) [$200,000 - $197,300 = $2,700 (dr)].

Question 2

All of the following are relevant policy disclosures suggested by the AcSB except:

Accepted Answer

All of the other options listed (A, B, D, and E) are suggested policy disclosures for pension plans by the AcSB. The number of employees, while important for understanding the makeup of the plan, is not necessarily a key disclosure for policy purposes.

Question 3

Timu joined the firm 12 years ago and is 42 today.The firm has a post-retirement health care plan with the following coverages for retirees:  Timu is expected to retire at age 63.The present value today of 100% post-retirement health care coverage for Timu is $20,000,considering life expectancy and other factors.The present value of 75% coverage is $14,000.What is the accumulated post-retirement benefit obligation for Timu today?

Accepted Answer

The answer of Timu joined the firm 12 years ago...

Question 4

When a pension plan is ended,the obligation is settled by transferring the assets to:

Accepted Answer

When a pension plan is ended, the obligation is typically settled by transferring the assets to a trustee, who manages the distribution of benefits to the plan participants according to the terms of the plan. This ensures that the assets are used to provide for the retirement income of the plan participants in a responsible and efficient way. Option A is incorrect because it would lead to each individual having to manage their own retirement savings, which can be risky and unsustainable. Option B is incorrect because financial banks are typically not equipped to manage the complex financial and legal aspects of pension plan terminations. Option D is incorrect because there must be a mechanism for settling the obligation to the plan participants.

Question 5

Bonnie joined a firm at age 25 and is expected to retire at 57.The post-retirement benefit plan provides the following coverage given the indicated years of service after age 30.  What is Bonnie's full eligibility date (her age when fully eligible)?

Accepted Answer

The answer of Bonnie joined a firm at age 25...

Question 6

Funding a pension plan may be handled as follows:

Accepted Answer

The answer of Funding a pension plan may be handled...

Question 7

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:  Jamieson's balance sheet as per IFRS for Year 1 would show a net:

Accepted Answer

The answer of Jamieson Corp.sponsors a defined benefit plan for...

Question 8

All of the following are relevant policy disclosures suggested by the AcSB except:

Accepted Answer

The AcSB (Accounting Standards Board) suggests disclosures related to financial aspects of pension plans, such as reconciliations, calculations, returns, and assumptions. The risk profile of the employee group is not typically a financial disclosure requirement.

Question 9

When a company offers termination benefits as the result of a restructuring plan,the special termination benefits should be:

Accepted Answer

Termination benefits resulting from a restructuring plan should be included with the restructuring costs on the income statement, as they are directly related to the restructuring activities.

Question 10

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31^st,Year 1 is:

Accepted Answer

The answer of Jamieson Corp.sponsors a defined benefit plan for...

Question 11

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:  Jamieson's pension expense as per ASPE for Year 1 would be:

Accepted Answer

The answer of Jamieson Corp.sponsors a defined benefit plan for...

Question 12

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's defined benefit obligation as at December 31^st,Year 1 would be:

Accepted Answer

The defined benefit obligation is the present value of future benefit payments, discounted using an appropriate interest rate. Using the data provided in the table, the calculation would be:
($600 x 10) + ($500 x 5) / (1.06)^10 + (1.06)^5
= $6,000 + $2,262.56
= $8,262.56
Therefore, the defined benefit obligation as at December 31, Year 1 would be $8,262.56.

Question 13

Pension related estimates (not funding data)are provided by the:

Accepted Answer

Pension related estimates, such as actuarial valuations, are typically calculated by independent actuaries who specialize in pension plans. These actuaries use various assumptions and data to estimate the future pension obligations and costs for the employer company. While the other options - the employer company, pension fund trustee, and employee union - may have some involvement in pension related estimates, it is ultimately the responsibility of the independent actuary to calculate and provide these estimates.

Question 14

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:  Jamieson's pension expense as per IFRS for Year 2 would be:

Accepted Answer

The answer of Jamieson Corp.sponsors a defined benefit plan for...

Question 15

Gains and losses from plan settlements and curtailments should be:

Accepted Answer

Gains and losses from plan settlements and curtailments should be recognized in income immediately according to Accounting Standards Codification (ASC) 715-30-35-4. There is no requirement for amortization over a period of time or deferral to the balance sheet.

Question 16

The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%,what is the accrued obligation at the end of the year?

Accepted Answer

The correct answer is A. The accrued obligation at the end of the year is $404,120. This is calculated as follows:Accrued obligation at the beginning of the year: $289,000Current service cost for the year: $92,000Interest on accrued obligation: $289,000 x 8% = $23,120Accrued obligation at the end of the year: $289,000 + $92,000 + $23,120 = $404,120

Question 17

Today is John's 57^th birthday and he has served 14 years for his firm.John is expected to retire on his 65^th birthday.His firm expects to incur $5,000 of annual net health care claims costs for John beginning one year after his retirement date and continuing each year for a total of seven years (assume seven end of year payments in all).To be fully eligible for these benefits,John must work 20 years.Compute expected post-retirement benefit obligation for John today if the discount rate is 8%.

Accepted Answer

The answer of Today is John's 57^th birthday and he...

Question 18

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:  Jamieson's balance sheet as per IFRS for Year 2 would show a net:

Accepted Answer

The defined benefit plan has a fair value of plan assets of $400,000 at the end of Year 2, which is less than the projected benefit obligation (PBO) of $426,576. As a result, the balance sheet would show a defined pension liability of $26,576.

Question 19

The accrued obligation at the beginning of the year was $456,000 and the current service cost for the year is $67,000.Assuming an interest factor of 6%,what is the accrued obligation at the end of the year?

Accepted Answer

Accrued obligation at the end of the year can be calculated using the formula:

Accrued Obligation at the end of the year = Accrued Obligation at the beginning of the year + Current Service Cost + Interest Cost

Interest Cost = Accrued Obligation at the beginning of the year x Interest factor

= $456,000 x 6% = $27,360

Therefore, Accrued Obligation at the end of the year = $456,000 + $67,000 + $27,360 = $550,360

Hence, the correct option is C.

Question 20

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence:  Jamieson's pension expense as per IFRS for Year 1 would be:

Accepted Answer

The answer of Jamieson Corp.sponsors a defined benefit plan for...

Quiz 8: Cost-Based Inventories and Cost of Sales

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 1 would show an accumulated other comprehensive income (AOCI) balance of:

All of the following are relevant policy disclosures suggested by the AcSB except:

When a pension plan is ended,the obligation is settled by transferring the assets to:

Bonnie joined a firm at age 25 and is expected to retire at 57.The post-retirement benefit plan provides the following coverage given the indicated years of service after age 30. What is Bonnie's full eligibility date (her age when fully eligible) ?

Funding a pension plan may be handled as follows:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 1 would show a net:

All of the following are relevant policy disclosures suggested by the AcSB except:

When a company offers termination benefits as the result of a restructuring plan,the special termination benefits should be:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31^st,Year 1 is:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's pension expense as per ASPE for Year 1 would be:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's defined benefit obligation as at December 31^st,Year 1 would be:

Pension related estimates (not funding data) are provided by the:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's pension expense as per IFRS for Year 2 would be:

Gains and losses from plan settlements and curtailments should be:

The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%,what is the accrued obligation at the end of the year?

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 2 would show a net:

The accrued obligation at the beginning of the year was $456,000 and the current service cost for the year is $67,000.Assuming an interest factor of 6%,what is the accrued obligation at the end of the year?

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's pension expense as per IFRS for Year 1 would be:

Quiz 8: Cost-Based Inventories and Cost of Sales

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 1 would show an accumulated other comprehensive income (AOCI) balance of:

All of the following are relevant policy disclosures suggested by the AcSB except:

When a pension plan is ended,the obligation is settled by transferring the assets to:

Bonnie joined a firm at age 25 and is expected to retire at 57.The post-retirement benefit plan provides the following coverage given the indicated years of service after age 30. What is Bonnie's full eligibility date (her age when fully eligible) ?

Funding a pension plan may be handled as follows:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 1 would show a net:

All of the following are relevant policy disclosures suggested by the AcSB except:

When a company offers termination benefits as the result of a restructuring plan,the special termination benefits should be:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31st,Year 1 is:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's pension expense as per ASPE for Year 1 would be:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's defined benefit obligation as at December 31st,Year 1 would be:

Pension related estimates (not funding data) are provided by the:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's pension expense as per IFRS for Year 2 would be:

Gains and losses from plan settlements and curtailments should be:

The accrued obligation at the beginning of the year was $289,000 and the current service cost for the year is $92,000.Assuming an interest factor of 8%,what is the accrued obligation at the end of the year?

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's balance sheet as per IFRS for Year 2 would show a net:

The accrued obligation at the beginning of the year was $456,000 and the current service cost for the year is $67,000.Assuming an interest factor of 6%,what is the accrued obligation at the end of the year?

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's pension expense as per IFRS for Year 1 would be:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: The funded status of Jamieson's defined benefit plan as at December 31^st,Year 1 is:

Jamieson Corp.sponsors a defined benefit plan for its employee group. The following data pertains to the plan's first 2 years in existence: Jamieson's defined benefit obligation as at December 31^st,Year 1 would be: