Page 235 - Group Insurance and Retirement Benefit IC 83 E- Book

184 AS 15

Example Illustrating Paragraph59

(Amount in Rs.)
A defined benefit plan has the following characteristics:

Present value of the obligation 1,100
Fair value of plan assets (1,190)
(90)
Unrecognised past service cost (70)
Negative amount determined under paragraph 55 (160)

Present value of available future refunds and reductions
in future contributions 90
Limit under paragraph 59 (b) 90

Rs. 90 is less than Rs. 160. Therefore, the enterprise recognises
an asset of Rs. 90 and discloses that the limit reduced the carrying
amount of the asset by Rs. 70 (see paragraph 120(f)(ii)).

Statement of Profit and Loss

61. An enterprise should recognise the net total of the following amounts
in the statement of profit and loss, except to the extent that another
Accounting Standard requires or permits their inclusion in the cost of an
asset:

(a) current service cost (see paragraphs 64-91);

(b) interest cost (see paragraph 82);

(c) the expected return on any plan assets (see paragraphs 107-109)
and on any reimbursement rights (see paragraph 103);

(d) actuarial gains and losses (see paragraphs 92-93);

(e) past service cost to the extent that paragraph 94 requires an
enterprise to recognise it;

(f) the effect of any curtailments or settlements (see paragraphs 110
and 111); and

(g) the effect of the limit in paragraph 59 (b), i.e., the extent to
which the amount determined under paragraph 55 (if negative)
exceeds the amount determined under paragraph 59 (b).