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Pensions (IAS 19) – Example – ACCA (SBR) lectures


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Comments

  1. jingdong says

    June 28, 2022 at 8:54 pm

    Dear Tutor, in defined benefit scheme, cash contribution $6 million to this pension scheme, how to make this double entry for this transaction? many thanks

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  2. andy31 says

    September 3, 2021 at 10:43 am

    Could anyone advise what would go through the consolidated cash flow with regards to the pension?

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    • arsalanrauf says

      September 4, 2021 at 10:56 am

      Consolidated Cash flow (Pension) from the notes. CH 7, page 41, under Pension heading

      1. Add back service costs in operating cash flows as a non-cash-item (like depreciation).

      2. Deduct contributions paid in operating cash flows as a cash outflow.

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  3. smokes2k6 says

    September 1, 2021 at 8:07 pm

    This has been extremely insightful. I had so much difficulty wrapping my head around working out pension questions and now I have a much better grasp of the subject. I now understand what the service costs are (the name is a bit misleading) and how to record them. The proforma for the reconciliation to work out the re-measurement value is also a big help. it just brings everything together nicely. Just simply plug in the numbers and you should be good!

    Thanks!

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  4. Ronnie92 says

    April 26, 2021 at 8:24 am

    The asset is 66 and the liability is 75 and the difference is 9, meaning there is a net pension liability of 9 since the liability is more than the asset.
    But i heard you say there is a net pension asset of 9 . Was it a mistake ?

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  5. Zura says

    August 21, 2020 at 10:03 pm

    Magnificent, thank you. At the last, when I watch your lesson, I fully understood pension scheme, especially defined benefits scheme, when the company have risks, but employee gets guarantee benefit.

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  6. Mohammed786- says

    July 8, 2020 at 5:17 pm

    Wheres the lecture?

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  7. thuthao says

    April 28, 2020 at 4:44 pm

    Return on plan assets = 4, interest = 6.25%
    =>Asset (c/f) = 64 =>Liability(c/f) = 119
    Interest on plan liability= 7.44

    Assume that no cash paid in/out.

    Net Obligation b/f (48)
    Interest expense (7.44)
    Return on Asset 4
    Remeasurement loss (3.56)

    Net obligation c/f (55)

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  8. loukasierides says

    February 23, 2019 at 6:04 pm

    thank you for a great easy to follow lecture

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  9. kartik123456 says

    January 10, 2019 at 9:09 am

    TC has a defined benefit pension plan and prepares financial statements to 31 March each year. The following information is relevant for the year ended 31 March 20X3:
    1. The net pension obligation at 31 March 20X3 was $55 million. At 31 March 20X2, the net obligation was $48 million, comprising the present value of the plan obligation stated at $100 million, together with plan assets stated at fair value of $52 million.
    2. The discount rate relevant to the net obligation was 6.25% and the actual return on plan assets for the year was $4 million.

    can you tell me what to do with the actual return on plan assets?

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    • kayee says

      February 12, 2019 at 6:44 am

      Net Obligation b/f (48)
      Interest expense (6.25)
      Return on Asset 4
      remeasurement loss(4.75) bal fig

      Net obligation c/f (55)

      SPL:
      Interest expense (6.25)
      Return 4

      OCI:
      remeasurement loss (4.75)

      For the return:
      Dr Pension Asset 4
      Cr Interest income 4

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    • thuthao says

      April 28, 2020 at 4:45 pm

      Return on plan assets = 4, interest = 6.25%
      =>Asset (c/f) = 64 =>Liability(c/f) = 119
      Interest on plan liability= 7.44

      Assume that no cash paid in/out.

      Net Obligation b/f (48)
      Interest expense (7.44)
      Return on Asset 4
      Remeasurement loss (3.56)

      Net obligation c/f (55

      Log in to Reply

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