What amount will electronic distribution report

Question

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2013 are as follows:

	($ millions)
PBO balance, January 1		$530
Plan assets balance, January 1		300
Service cost		50
Interest cost		30
Gain from change in actuarial assumption		36
Benefits paid		(46)
Actual return on plan assets		23
Contributions 2013		40

 

The expected long-term rate of return on plan assets was 9%. There were no AOCI balances related to pensions on January 1, 2013, but at the end of 2013, the company amended the pension formula creating a prior service cost of $18 million. Assume Electronic Distribution prepares its financial statements according to International Financial Reporting Standards. Also assume that 10% is the current interest rate on high-quality corporate bonds.

 

Required:

1.

Calculate the net pension cost for 2013, separating its components into appropriate categories for reporting. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)   1. Calculate the net pension cost for 2013, separating its components into appropriate categories for reporting. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) ($ in millions) Service cost Net interest cost Remeasurement gain from assumption change Remeasurement loss on plan assets Net pension cost What amount will Electronic Distribution report in its 2013 balance sheet as a net pension asset or net pension liability? (Enter your answer in millions.)