Presented below is pension information related to Mango Ltd.at December 31, 2017.The corporation uses IFRS. The amount to be reported as the net defined benefit liability at December 31, 2017 is

Question

Presented below is pension information related to Mango Ltd.at December 31, 2017.The corporation uses IFRS.  The amount to be reported as the net defined benefit liability at December 31, 2017 is

Quizplus · Accepted Answer

The net defined benefit liability is calculated as the present value of the defined benefit obligation minus the fair value of plan assets.

At December 31, 2017:

Defined benefit obligation = $3,500,000
Fair value of plan assets = $2,500,000

Therefore, the net defined benefit liability = $3,500,000 - $2,500,000 = $1,000,000.

Option B is the correct choice.

Presented Below Is Pension Information Related to Mango Ltd