Handfood Co

Hi,
I am referring to Question b(i) of HANDFOOD problem (SEP/DEC 2020).
Question is available here: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/SBR/sd20_sbr-int_q_update.pdf
Answer is available here: https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/SBR/sd20_sbr-int_a_update.pdf

In the answer, they state that: Handfood Co recognises a current service cost expense of $7,700 in profit or loss.This figure will be unwound each year and the movement recorded as the current service cost (in so far as no other changes to the assumptions are made).

Is my understanding correct that they suggest to record:
Dr. Service cost – 7.7 mln
Cr. Non-current Liability – 7.7 mln
in the current period.

and then record 7.7*5%=0.385 next year as follows:
Dr. Service cost – 0.385 mln
Cr. Non-current Liability – 0.385 mln

Thanks in advance,
Giga