Question

Coronado Corp. has three defined benefit pension plans as follows.

	Pension Assets (at Fair Value)	Projected Benefit Obligation
Plan X	$637,000	$471,000
Plan Y	883,000	751,000
Plan Z	591,000	661,000

How will Coronado report these multiple plans in its financial statements?

Answer 1

Plan X has pension assets = $637000

And the projected benefit obligation = $471000

So there are more Pension assets than required

= 637000-471000 = $ 166000( Pension Assets)

Plan Y has pension assets = $883000

And the projected benefit obligation = $751000

So there are more Pension assets than required

= $883000-$751000 = $132000(Pension Assets)

Plan Z has pension assets = $591000

And the projected benefit obligation = $661000

So there are less Pension assets than required

= $591000- $661000 = -$70000(Pension liabilities)

Total Pension Assets to be reported on financial statements =$298000

Total Pension Liabilities to be reported =$70000

answered by: anonymous