Pension data for Sterling Properties include the following: ($ in 000s) $116 550

Question

Pension data for Sterling Properties include the following: ($ in 000s) $116 550 600 Service cost, 2818 Projected benefit obligation, January 1, 2018 Plan assets (fair value), January 1, 2018 Prior service cost-AOCI (2018 amortization, $9) Net loss-AOCI (2018 amortization, $2) Interest rate, 8% Expected return on plan assets, 12% Actual return on plan assets, 13% 109 Required: Assume Sterling Properties prepares its financial statements according to International Financial Reporting Standards. interest rate on high grade corporate bonds, Determine the net pension cost thousand et pension cost

Explanation / Answer

Components of pension Cost Particuars Amount ($) Service Cost 116000 Interest cost (550000*8%) 44000 Expected return on the plan assets (600000*12%) -72000 Amortization of prior service cost 9000 Amortization of net loss 2000 Net pension Cost 99000

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