FINANCIAL ACCOUNTING 1

POST BENEFIT OBLIGATION (PSAK 24 REVISED 2013)

Problem 1
Explain substantial differences between PSAK 24 (revised 2010) and PSAK 24 (revised 2013)!
Problem 2
Classify into the right classification of post benefit obligation:
a. PT. ABC pays fixed contributions into a separate entity (a fund) and will have no legal or
constructive obligation to pay further contributions if the fund does not sufficient assets to
pay all employees benefit relating to employee service in the current and prior period.
b. PT. DEF bears increasing obligation when actuarial or investment experience are worse than
expected.
c. The company set aside funds for future pension benefit by making payments to pension fund
agent.
d. Pension plan which the contribution paid by employee and company.
e. The company set aside funds for future pension benefit by making a certain amount payments
to pension fund agent. In the end of claim period the fund doesnt meet the comitted benefit
value. Then company have to be cover the deficit by itself.
Problem 3
a. Mention the emphasis factor that affect Defined Benefit Obligation!
b. Mention the emphasis factor that afect Fair Valeu of Plan Assets!
Problem 4
Classify into the right presentation of benefit cost component (either included in Gain or Loss
Statement or Other Comprehensive Income):
a. Settlement gain
b. Past service cost
c. Actuarial loss due from difference between demographic assumption and actual
d. Actuarial gain due from difference between projected ROA and actual return
e. Difference between Present Value Defined Benefit Obligation multiplied by discount rate
Problem 5
PT. ABC provide a defined benefit obligation pension plan for its employee that organized by pension
fund. The following are infrmation related to the pension program as of December 20x1:
a. Current service cost for year 20x1 is $ 20,000
b. Fair value on Plan Asset as of 1 January 20x1 is $180,000
c. Present value defined benefit obligation 1 January 20x1 is $ 200,000
d. Discount rate and expected return on Plan Asset are follows:

Discount Rate
Expected Return on Plan Asset

1 January 20x1
5%
7%

31 December 20x1
6%
8%

e. The past service cost is not vested and the average remaining period to vesting is three years.
The past service cos is amounted $ 1,400
f. There is significant decreasing employee that create a liability for the company amounted $
1,200
g. Contribution paid during 20x1 is $ 20,000
h. Actual return on Plan Asset for 20x1 is $ 10,000
i. Changes in actuarial assumption in salary rate establish underexpectation amounted by $
5,000
j. Limit for corridor testing is 10%
Instruction:
i. Calculate expense that resent in Income (Profit or Loss) Statement and Statement of
Comprehensive Income!
ii. Calculate present value defined benefit obligation and Fair Value on Plan Asset of PT. ABC on
31 December 20x1! How much Pension Aset/Liability should be reported on Statement of
Financial Position?
iii. Prepare Journal Entry for Post Benefit Obigation above!

SOLUTION
Problem 1
The substantial differences between PSAK 24 (revised 2010) and PSAK 24 (revised 2013)are:
- PSAK 24 (revised 2013) define classification of employee benefit (short term benefit, post
employment benefit, long term employee benefit, termination benefit), program
classification, net benefit liability/asset, and costs related employee benefit.
- Classify costs component related employee benefit into:
i. Sevice costs current service costs, past service costs, gain/loss due from settlement
P/L Statement
ii. Net Interest net of (PVDBO FVPA) x discount rate P/L Statement
iii. Remeasurement actuarial gain/loss, return on plan asset, any change in the effect of
the asset ceiling Other Comprehensive Income (OCI)
Impact:
All of the service costs presented on Balance sheet so there is no amortization on past
service costs.
Actuarial gain/loss accomodated overall by OCI so there is no corridor test.
Net interest is calculated from discount rate so there is no expected rate concept anymore.
Problem 2
a. Defined contribution plan
b. Defined benefit plan
c. Funded benefit plan
d. Contributory benefit plan
e. Defined benefit obligation
The real example is the integrated program to comply with the clausul of Labor Law 13/2013
which is done through the Pension Fund. The collection of pension funds could be replaced by
the Pension Fund, but under the nature of mandatory, the company must ensure the value of
the defined benefit in accordance with applicable regulations. So there, it is classified as
defined benefit obligation.
Problem 3
a. Emphasis factor that affect Defined Benefit Obligation:
- Current service cost
- Net interest cost
- Past service cost
- Effect of settlement
- Actuarial gain/loss (demographic, salary rate assumption)
- Benefit payment (if unfunded)
b. Emphasis factor that afect Fair Value of Plan Assets:
- Return on Plan Asset (at discount rate)
- Contribution
- Benefit payment (if funded)
- FV adjustment (revaluation)
- Actuarial gain/loss (related financial assumption, i.e. ROA)
Problem 4
a. P/L Statement
b. P/L Statement

c. OCI related DBO

d. OCI related Asset Plan
e. P/L Statement
Problem 5
Refer to Excel Worksheet