• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

BPP Book illustration 2 Defined benifit plan,pg 87

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › BPP Book illustration 2 Defined benifit plan,pg 87

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 28, 2018 at 3:42 pm #460458
    ashiktamot
    Member
    • Topics: 10
    • Replies: 0
    • ☆

    Deat Richard,

    in this ilustration past service cost i,e gain on curtailment is calculated as 12-9=3 leading to decrease in pension plan liability by 3 only,,,, why is 9 ,the benefit payment deducted to decrease the liability where this benefit payment has net effect i,e it reduces both pension liability ans asset i,e
    Dr pension plan liability 9
    cr pension plan asset 9
    further more the reduction in employees lead to reduction in liability leading to a gain i,e
    Dr, pension plan liability 12
    cr P/L Gain 12
    thus the pension plan obligation is decreased by 12 plus 9 so why 3 is calculated?,,
    plz explain

    July 2, 2018 at 9:28 pm #460758
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7231
    • ☆☆☆☆☆

    Hi,

    The reduction in the scheme liability is not as you suggest above. The entry required is:

    DR Liability $12 million
    CR Bank $9 million
    CR SPL $3 million (balancing figure)

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • aesya on FA Chapter 10 Questions Books of Prime Entry
  • Emelyn on Conceptual Framework – ACCA SBR lecture
  • John Moffat on Discounted cash flow techniques (part 1) – ACCA (AFM) lectures
  • lokeshdh00 on Discounted cash flow techniques (part 1) – ACCA (AFM) lectures
  • yuanbao on The nature and structure of organisations – ACCA Paper BT

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in