[rb81490]

can someone please give me the formula to figure out

1. Actual Return?

2. Journal Entry and components to record Pension Expense

3 PBO formula- does it use actual or expected return?

Thanks!!!

[Anonymous]

1) Actual Return: Beg FV of Pension Assets X Actual Return Or you can calculate it this way: End PA – Beg PA – Contribution made + Benefits Paid.

2) JE to record Pension Expense :

Dr. Pension Expense

Dr. Prepaid pension (If any-always non current)

Cr. Cash

Cr.Accrued Liability (If any-Current or non current)

3) Sorry I am not sure about it. Some one please help!

[rb81490]

but if i dont know the actual return how can i do this ? “Beg FV of Pension Assets X Actual Return “

[Anonymous]

It must be given , otherwise use the alternative formula

[Author]

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