defined benefit scheme

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July 28, 2021 at 4:35 am #629617
Noah098
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sir can you explain the deferred tax implications relating to defined benefit scheme?

I understand that in case of defined contribution scheme, any accrued pension contribution will lead to a DT asset.

but am not sure how DT asset/liability can possibly arise in a defined benefit scheme
July 28, 2021 at 5:35 pm #629694
Stephen Widberg
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If you have a net liability in the SFP (which is usual) you will have a DT asset.

Usually because service and net interest costs (in P&L0 exceed contributions paid (allowed for tax).

You will be told the tax rules in the exam.
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