I am doing pretty well on pensions, just completed like 4 pension worksheets and now I feel a lot more comfortable with the material. However I just did a Wiley sim and have a question on it maybe someone can help me with.
STR Inc. provides the following information about its defined benefit pension plan for the year 20X2:
Accumulated OCI — PSC, 1/1/year 2 $150,000
Actual and expected return on plan assets 43,000
Benefits paid 20,000
Contribution to the plan 95,000
Prior service cost amortization 10,000
Projected benefit obligation, 1/1/year 2 250,000
Plan assets, 1/1/year 2 175,000
Service cost 50,000
Interest/discount (settlement rate) 10%
In the pension worksheet column OCI – PSC, shouldn't there be a beginning balance of 150,000, then with 10,000 amortized, the ending balance will be 140,000? For the OCI-PSC Column Wiley says;
Beginning Balance 0 (I put 150,000)
Amortization of Prior Svc Cost -10,000
Journal Entry -10,000
Accumulated OCI 150,000 (I put 140,000 cause I thought they were asking for the ending AOCI…)
Ending Balance 140,000
Sims always make me more confused when I think I have the material down 🙁
FAR - 89 (8/19/14) Wiley TB, Wiley Book, Books from School, Ninja Audio/Notes
AUD - 92 (10/14/14) Wiley TB, Wiley Book, Ninja Audio
BEC - 82 (5/8/15) Mostly Ninja MCQ, sprinkles of Becker lectures and Ninja Audio
REG - (8/14/15)
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