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IAS 19

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 19

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by AvatarStephen Widberg.
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  • June 5, 2024 at 8:18 pm #706773
    Avataradarsh1997
    Participant
    • Topics: 646
    • Replies: 282
    • ☆☆☆☆

    Hello

    A gain or loss on settlement arises. How actually does this gain or loss arises?
    The gain or loss on settlement is the difference between the FV of the assets paid out and the reduction in the PV of the defined benefit obligation. What does this mean?

    Thanks

    June 6, 2024 at 7:05 am #706803
    AvatarStephen Widberg
    Keymaster
    • Topics: 17
    • Replies: 3452
    • ☆☆☆☆☆

    You are a pensioner. I am a big bad employer.

    The plan owes you 100 (but the jargon is so complex that you don’t really understand it).

    The employer gives you 90 to go away.

    Gain of 10 arises.

    🙁

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