The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.
Given that:
PBO at the beginning of the year = $80 million
Service cost for the year = $10 million
Interest = Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million
Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million
Benefits paid paid by trustees = $6 million
The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million
Gaw Company investment in Trace Corporation will be treated as Investment Assets. In its book ,it can only recognize its share of dividend paid as return on investment.
Gaw Company cannot recognize its share of entire net income of Trace because it doesn't have controlling interest (i.e subsidiary) in the company neither does it have significant influence (i.e associate).
Explanation:Human Resource function is a management activity that regulates the processes involved in planning, recruitment, allocation, training, compensation and ensuring that the organization performs effectively.
HR function should be aligned with an organization's strategic plan to ensure PROPER MANPOWER ALLOCATION (this will ensure the right person,persons with the needed skills are recruited and allocated).
Effective cost management/Budgeting(this will ensure that manpower allocation shall be based on the strategic budget by management)
