Presented below is information related to Peach Corporation's defined benefit pension plan for calendar 2017.The corporation uses IFRS. The balance of the defined benefit obligation at December 31, 2017 is

Question

Presented below is information related to Peach Corporation's defined benefit pension plan for calendar 2017.The corporation uses IFRS.  The balance of the defined benefit obligation at December 31, 2017 is

Quizplus · Accepted Answer

In order to determine the balance of the defined benefit obligation, we need to consider the following information provided in the question:
- At the beginning of the year (January 1, 2017), the defined benefit obligation was $180,000.
- During the year, service cost was $10,000, interest cost was $12,000, benefits paid were $20,000, and actuarial losses of $3,000 were recognized.
Based on these figures, we can calculate the ending balance of the defined benefit obligation as follows:
Beginning balance + Service cost + Interest cost + Actuarial losses - Benefits paid = Ending balance
$180,000 + $10,000 + $12,000 + (-$3,000) - $20,000 = $179,000
Therefore, the balance of the defined benefit obligation at December 31, 2017 is $207,000 (not $179,000). The correct answer is therefore C.

Presented Below Is Information Related to Peach Corporation's Defined Benefit