The following facts apply to the pension plan of Yorke Inc. for the year 2017. Yorke applies ASPE. Plan assets, January 1, 2017 490000 Defined benefit obligation, funding basis, January 1, 2017 389000 defined benefit obligation, accounting basis, January 1, 2017 490000 Discount/interest rate 0.085 Annual pension service cost 40000 Contributions (funding) 30000 Actual return on plan assets 49700 benefits paid to retirees 33400 Instructions: a) Using a work sheet, calculate pension expense for the year 2017, and provide the entries to recognize the expense and contributions for the year assuming that Yorke has chosen the funding measure of its defined benefit obligation as its accounting policy. b) Discuss what adjustments would need to be made to your calculations and entries in part (a) if Yorke s accounting policy choice was the accounting measure of its defined benefit obligation. c) Calculate pension expense if IFRS had been applied to this plan. Comment on any difference between this expense and the pension expense calculated in part (b).
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