A partially completed pension spreadsheet showing the relationships among the elements that comprise the defined benefit pension...

4.2 Ratings (725 Votes)

			Prior				Net pension
		Plan	service	Net	Pension		(Liability) /
($ in thousands)	PBO	Assets	Cost - AOCI	Loss - AOCI	Expense	Cash	Assets
Balance, Jan. 1, 2021	-$700.0	$400.0	$95.0	$70.0	$0.0	$0.0	-$300.0
Service cost	-$86.0				$86.0		-$86.0
Interest cost, 5%	-$35.0				$35.0		-$35.0
Expected return on assets		$32.0			-$32.0		$32.0
Adjust for:
Loss on Assets		-$7.0		$7.0			-$7.0
Amortization
Prior service cost			-$5.0		$5.0
Amortization
Net loss				$0.0	$0.0
Gain on PBO	$10.0			-$10.0			$10.0
Prior service cost	$0.0		$0.0				$0.0
Cash funding		$70.0				-$70.0	$70.0
Retiree benefits	$50.0	-$50.0
Balance., Dec. 31, 2021	-$761.0	$445.0	$90.0	$67.0	$94.0	-$70.0	-$316.0

Workings :
Computation of net loss amortization :
Net loss–AOCI			$ 70
10% of $700 PBO (greater than $400 Plan assets)			$ 70
Amount to be amortized			$ -

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