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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › CONFUSING PHRASE ON IAS 19
I don’t understand this phrase “. Defined benefit plans may be unfunded, or they may be wholly or partly funded.”
How can they be unfunded? If the company doesn’t have any obligation to put funds in the asset (unfunded) then how can it be a defined benefit plan as the risk and rewards then don’t stay with the company. So what’s unfunded and partly funded?
Here’s a link to follow!
Fine got the definition of fully funded but what’s unfunded then?