Font size
WorksheetsFARAP12BB - Post Employment Benefits
Total questions: 45
Worksheet time: 32mins
This is the present value of the estimate of the entity's retirement obligation in the future.
Retirement Fund
Defined Contribution Plan
Defined benefit obligation
Asset ceiling
Post employment plan includes -
Salaries and wages
Pension
Informal Post employment life insurance
Termination Benefits
Non contributory post employment medical care
Once the defined contribution is paid, the employer has no more obligation under the plan.
True
False
Obligations under DCP, are measured on an undiscounted basis except when they are not expected to be settled wholly within 12 months after the end of the reporting period.
True
False
Under a DBP, the expense recognized is equal to the amount of contribution for the period.
True
False
Any unpaid contribution under the DCP shall be recognized as expense in the period it is paid.
True
False
The amount recognized as expense for DCP shall not be disclosed.
True
False
The obligation under DBP is measured on a discounted basis.
True
False
PAS 19R retires an entity to involve a qualified actuary in the measurement of a DBO.
True
False
Service cost comprises -
Current service cost
Actuarial gains
Loss on settlement
Past service cost
The following increases DBO -
Current service cost
Interest expense
Actuarial gains
Actuarial losses
The following decreases DBO -
Benefits paid to retirees
Actuarial gains
Actuarial losses
Settled benefits at present value
Payment to retirees and settled benefits decreases the amount of DBO by their actual payments.
True
False
The following are to be recognized in the profit or loss as components of employee benefits expense.
Actual return on plan assets less interest income on plan assets
Service cost
Interest Income in plan assets
Interest expense on defined benefit liability
The following are to be recognized fully through other comprehensive income and are not recycled or reclassified subsequently to profit or loss.
Service cost
Actuarial gains
Any change in the effect of at ceiling minutes interest on the effect of asset ceiling
Actual return on plan assets less interest income plan assets
The following affects the plan assets.
Unpaid contributions
Contributions of the entity
Payment to retirees
Withdrawals from the plan assets
Actuarial gains and losses
The following affects the plan assets.
Unpaid contributions
Non transferable financial instruments issued by the entity and held by the fund.
Payment to retirees
Actual return on plan assets
Actuarial gains and losses
What increases plan assets?
Actual return
Actual loss
Contributions
Interest Income
Actuarial gains
What decreases plan assets?
Actuarial losses
Loss on settlement
Withdrawals from the fund
Actual loss
PV of settled benefits
There is remeasurement gain if -
Actual return is greater than interest income
Actual return is less than actual loss
Actual return is greater than actual loss
Actual return is greater than interest expense
There is remeasurement loss if -
Actual return is less than interest income
Actual loss is greater than interest income
Actual loss is less than interest income
Equal to actual loss plus interest income
What is the treatment for interest income on plan assets?
Reported as deduction from interest expense
Part of net interest
To be recognized in OCI as remeasurement
To be compared to actual return to determine if there is a remeasurement gain or loss
What is the treatment for the difference of the actual return and the interest income from plan assets?
Nothing
Actuarial gains
Remeasurement gain or loss to be recognized in profit or loss
Remeasurement gain or loss to be recognized through OCI
What transaction affects both DBO and plan assets?
Interest Income from plan assets
Benefits paid to retirees
Premature settlements
Actuarial gains and losses
Contributions
How to compute interest income?
Beginning balance of DBO x discount rate as of the end of reporting period
Beginning balance of DBO x discount rate as of the beginning of the reporting period
Beginning balance of plan assets x discount rate as of the beginning of the period
Beginning balance of plan assets x discount rate as of the end of the period
Weighted average plan assets x discount rate at the beginning of the period
Actuarial gains or loses are permanently excluded from profit or loss
True
False
Remeasurement shall not be transferred within equity or reclassified to retained earnings.
True
False
How to present DBO and plan assets in the balance sheet?
Separately
Netted
What comprises total retirement cost?
Net expense recognized in profit or loss
Net cost recognized in OCI
Total net cost recognized in profit or loss and OCI
Difference between the balances of DBO and plan assets
Interest Income plus remeasurement gain or loss is -
Net interest to be recognized in profit or loss
Gain or loss on settlement
Amount of contribution
Actual return or loss
Past service cost includes changes in actuarial assumptions
True
False
Gain or loss on settlement arises from immediate and/or premature payment of retirement benefits.
True
False
Payment to retirees and settlement amounts are included to the retirement cost.
True
False
What comprises actual return or loss?
Interest expense
Interest Income
Remeasurement gain
Remeasurement loss
It is the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.
Defined Benefit Obligation
Current service Cost
Asset Ceiling
Past service cost
When do we account for the effect of asset ceiling?
Whenever the management opt to
Never
If surplus of plan assets exceeds asset ceiling
If surplus of plan assets was less than asset ceiling
It is the amount of excess of surplus of plan assets over the amount of asset ceiling
Net retirement asset
Net retirement liability
Effect on asset ceiling
Interest expense
Asset ceiling does not affect and limit the amount of ending balances of DBO and plan assets
True
False
The effect of asset ceiling is accounted as -
Recognized in the OCI only
Recognized in the profit or loss only
Recognized in the OCI as remeasurement gain or loss and reduced by the amount of interest
Ignored
How to compute for the interest income or expense on asset ceiling?
Beginning of the period amount of effect of asset ceiling x discount rate as of the beginning of the period
End of period discount rate applied to ending amount of effect of asset ceiling
Remeasurement gain or loss on asset ceiling is the difference between the change in effect of asset ceiling and the interest income or expense on asset ceiling.
True
False
What is the ending balance of DBO?
(a)
What is the ending balance of plan assets?
(a)
What is the net retirement cost to be recognized in the profit or loss?
(a)
What is the net retirement cost to be recognized in the profit or loss?
(a)
