BPP REvision kit defined benefit pension scheme

Hi, I'd stop trying to think about it as adding/subtracting, use debits and credits instead. Also don't net the interest income and expense, treat them separately. In Q3, interest expense is 10% of the $120m (110 + 10), and this is debited through profit or loss. If you want to think adding/subtracting then this is added to the expenses already recorded (service costs). The interest income is then 10% of the $150m, and this is credited through profit or loss. Again, this is then subtracted from the expenses already recognised. The key difference here in this question is that the interest income is larger than the interest expense, and hence the difference from the examples previously seen, Based on this, see if it then helps you understand Q4. If it doesn't then please let me know. Thanks