Page 290 - F1 Integrated Workbook STUDENT 2018

Chaptter 17

Exxampple 2

T has a defineed benefit pension pllan and maakes up finnancial stattements too
31 March eacch year. Thhe net penssion liabilitty (i.e. obliggation lesss plan asseets)
at 331 March 220X3, was $40 millionn ($35 million at 31 MMarch 20X2X2). The
folloowing additional information is relevant foor the yearr ended 31 March 20X3:

 The disccount rate relevant too the net liaability at the start of t the year waas
10%.

 The currrent service cost wass $45 millioon.

 At the ennd of the yyear the enntity granteed additionaal benefits to existingg
pensioners that haave a preseent value oof $10 million. These were not
allowed for in the ooriginal acttuarial assumptions.

 The entiity paid pension conttributions oof $40 millioon.

Reqquired:

Callculate thee re-measurement ccomponennt gains/loosses arising in the
yeaar ended 331 March 220X3.

Preepare extraacts from the statemment of prrofit or losss and othher
commprehenssive incomme for the yyear endeed 31 Marcch 20X3 annd the
staatement off financial position aat 31 Marcch 20X3 shhowing hoow the
deffined beneefit schemme would bbe presentted.

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