1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lyudmila [28]
3 years ago
11

On January 1, Year 1, the Hoverman Corporation made amendments to its defined benefit pension plan, resulting in $150,000 of pas

t service costs. The plan has 100 active employees with an average expected remaining working life of 10 years. There currently are no retirees under the plan. Required: Determine the amount of past service costs to be amortized in Year 1 and subsequent years under (a) IFRS and (b) U.S. GAAP.
Business
1 answer:
Lapatulllka [165]3 years ago
3 0

Answer:

Check the explanation

Explanation:

a)

In IFRS according to IAS 19 all past service cost is recognized in the net income in the period in which amendment (change) is made by entity for defined benefit pension, it does not matter what is the status of the employees who will benefit the change. So in Year 1 $150000 will be expended completely and in subsequent years the amount is $0

Year 1 =$150000

Subsequent years= $0

b) In US GAAP the past service cost is recorded in Accumulated other comprehensive income in the year of amendment. It is amortized over the future working life of the participants.

Year 1 is year of adoption hence $0 is amortized because $150000 is included in Accumulated other comprehensive income.

Subsequent years: (150000/10=15000) $15000 will be amortized for each year for 10 years.

You might be interested in
Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year. At the end of th
FromTheMoon [43]

Answer: 4%

Explanation:

From the question, we are informed that Pension plan assets were $1,200 million at the beginning of the year and $1,252 million at the end of the year and that at the end of the year, retiree benefits paid by the trustee were $28 million and cash invested in the pension fund was $32 million.

Based on the above scenario, the percentage rate of return on plan assets goes thus:

Opening balance of plan assets 1200

Add:- Actual return = 48

Add:- contributions = 32

Less :- retiree benefits = -28

Closing balance of plan assets = 1252

It should be noted that the actual return is the balancing figure which is calculated as:

= 1252 + 28 - 1200 - 32

= 48

The percentage rate of return on plan assets will now be:

= 48/1200

=0.04

= 4%

4 0
3 years ago
Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula
Citrus2011 [14]

Answer:

4.89%

Explanation:

Real rate of return = 3.37%

Inflation rate = 1.47%

The nominal rate of return is computed as shown below:

= [ (1 + real rate of return) x (1 + inflation rate) ] - 1

= [ (1 + 0.0337) x (1 + 0.0147) ] - 1

= (1.0337 * 1.0147) - 1

= 1.04889539 - 1

= 0.04889539

= 4.889539%

= 4.89% approx.

7 0
3 years ago
Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve. a. Firms become more
Aleks04 [339]

Answer:

a. AD curve will shift to the right

b. AD curve will shift to the left

c. Movement along the AD curve.

Explanation:

a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.

b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.

c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.

7 0
3 years ago
SWOT analysis is useful in part because it obliges the firm to act proactively by putting an emphasis on identifying opportuniti
S_A_V [24]

Answer: True

Explanation:

SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is very popular because even though it appears simple, it can have such a massive impact on a company because it alerts Management to opportunities that exist to take the firm forward.

It also speaks to the company on ways to converge strategies that aim to harness the strengths or weaknesses in a Firm's INTERNAL and EXTERNAL environment with the aformentioned OPPORTUNITIES and THREATS thereby leading to a COMPLETE decision making process and result that can serve to push the company to be Proactive in taking strides that will grow the company.

SWOT analysis is a pure example of, "Simplicity is the ultimate Sophistication".

4 0
3 years ago
Read 2 more answers
Which tool does the federal reserve use to control monetary policy through bank borrowing? discount rate money creation open-mar
Alina [70]

The <em>federal reserve</em> use <u>open-market operations</u> tool to control monetary policy through<em> bank borrowing.</em>

<h3>What are open-market operations?</h3>

Open market operations tend to imply the process in which the Fed buys and sells securities of the government in the <u>financial market</u> or to <u>commercial banks. </u>

Therefore, the money supply stabilizes when Fed <em>sells securities</em> that <u>decrease</u> the borrowing capacity of the banks. Similarly, when Fed <em>purchases securities</em>, the banks' borrowing capacity increases which increase the <em>money supply. </em>

Learn more about Federal reserves here:

brainly.com/question/18451428

8 0
2 years ago
Other questions:
  • What can you bring to our police department to make you a valuable asset to us?
    9·1 answer
  • What is the difference between anomaly based monitoring and signature based monitoring?
    10·1 answer
  • The balance sheet below reflects Zee Bank after its purchase of $50 million in government securities from the Fed. Assume a requ
    12·1 answer
  • Don and Susanne have both been accused of insider trading. Don knows that if he confesses while Susanne keeps silent, he will re
    8·1 answer
  • Suppose your company reports $210 of net income and $50 of cash dividends paid, and its comparative balance sheet indicates the
    8·1 answer
  • A ______________ study seeks to discover the differential effects of a range of values on the independent variable on the depend
    12·1 answer
  • Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion, and government
    7·1 answer
  • Helena Company uses a standard cost system, and allocates variable overhead costs based on direct labor hours. This month, the f
    6·1 answer
  • I lost my debit card on my house but it’s the temporary and my real card is late so i need to call my bank but it ask for my car
    12·1 answer
  • When the price is $12 the quantity demanded is 50. When the price increases to $24 the quantity demanded decreases to 30. Calcul
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!