The Campolino Company has a defined benefit post-retirement health care plan for its employees. At the beginning of Year 1, Campolino amended the plan to provide additional benefits to all employees.
The following facts apply to the plan for the year ended December 31, Year 1:
Other information:
• There are no retirees and none of the active employees is vested.
• There are no unamortized actuarial gains or losses at the beginning of the year.
• Benefits and employer contributions were paid on December 31, Year 1.
Required:
Use the following template to determine the post retirement benefit expense for the year ended December 31, Year 1 and the post-retirement benefit liability at December 31, Year 1 to be reported by Campolino Company under IFRS. Prepare the necessary journal entry to reflect these amounts.
