[monicasanta]

help please!!

In pension journal entry, when we record the contribution to the pension plan, in terms of whether to use pension benefit asset OR liability, does it depend on BEGINNING of the year funded status, or END of the year funded status (overfunded/underfunded)??

[demarcon]

It uses ending FV of plan assets and ending PBO. You are talking about the entry to determine what gets booked to OCI and what gets booked to the liability/asset right?

[r_f_94]

If you use Becker look at the second set of sims #4 as a good example.

[monicasanta]

@demarcon @r_f_94

Becker uses the beginning funded status to determine the JE, for example, we have a overfunded pension plan end of last year, and it becomes underfunded end of this year.

The JE to record pension cost is by using “Pension benefit ASSET”, rather than liability….

Anyone can help?

[Author]

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