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June 21, 2018 at 7:15 am
I got confused on the Benefit Paid out–what would be the double entry of Benefit Paid out: As I think that Benefit Paid out will be an actual payment made by the company, so I guess it will be CR BANK DR PLAN LIABILITY But in calculating the PLAN ASSET, Benefit Paid out also reduces the value of the PLAN ASSET. What will be the other DR that offset the CR of PLAN ASSET? If I am wrong, WHAT will be the Right logic to deal with Benefit Paid Out?
Thank you ~~~~~!!!!!
June 21, 2018 at 8:55 am
When the asset is liquidated, cash is received and we would therefore DR Bank.
It is this cash that is used to then pay the pensioners using the double entry you state above.
The overall net effect of the two entires is to DR Liability CR Asset.
August 7, 2017 at 3:50 pm
Thank you. You made it look easy
May 26, 2017 at 1:41 pm
Wow…enjoyed it..Now I could solve this with ease
April 18, 2017 at 8:04 pm
Thank you so much!! I watched a lecture video from my learning provider and it just seemed really complicated, but you have explained it perfectly here. 🙂
December 29, 2016 at 1:50 am
Mr. Christopher thanks you for your efforts,
my question is when do we creat the other component of equity (OCE) account? I mean when we do revaluation to the assets under IAS 16 we create this account, but do we do the same here? and if you can please outline the situations where we should create this account, OCE)
December 31, 2016 at 9:38 am
The OCE account is another reserve account that we use for any gains/losses that do no go through profit or loss. So you’re correct in that any gain on revaluation of PPE would appear in here, as well as the remeasurement component discussed in the lecture above.
Other items found in OCE would be gains/losses on financial assets held as FVTOCI that you’ve seen in F7. There will be others that you will see as you work through the rest of the P2 lectures.
December 3, 2016 at 9:33 am
Explained beautifully 🙂 thank u so much
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