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Dear Tutor,
Can u explain me below paragraph..I saw the answer which is in the back of the kit..Unfortunately, couldn’t figure it out..The actuarial value of Traveler’s pension plan showed a surplus at 1 Dec 20X0 of $72m.Losses of $25m on re measurement of the net defined benefit asset are to be recognized in OCI in accordance with IAS19.Aggregate of the current service cost and the net interest cost amounted to a cost of $55m for the year. After consulting with the actuaries, the Company decided to reduce its contribution for the year to $45m. The contributions were paid on 7 Nov 20X1. No entries had been made in the financial statements for the above amounts.The presented value of available future refunds and reductions in future contributions was $18m.
Kind regards ?
Hi,
Which bits of the answer don’t you understand? If you’re a bit more specific then I can help.
Thanks
Hi, i could not understand the treatment regarding the reduction of contributions (45). Could you please, explain?
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