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Campus limited has a defined benefit plan. The following information relates to this plan
for the year ended 31 December 2017
Defined benefit plan asset opening balance N$ 300 000
Defined benefit plan obligation opening balance N$ 400 000
Discount rate based on market yield of high quality corporate 10% (unchanged)
Benefits paid to employees N$ 100 000
Contributions by employees into the plan assets N$ 150 000
Contribution by employer into the plan assets N$ 250 000
Current service costs at present value N$ 500 000
Present value of plan obligation as at 31 December 2017 N$ 800 000
Fair value of plan assets as at 31 December 2017 N$ 600 000
There was a Nil balance on the defined benefit plan asset ceiling adjustments account as
at 1 January 2017.
The present value as at 31 December 2017 of future refunds and reductions in future
contributions is N$ 1 000 000.
Provide all journal entries to the defined benefit plan for the year ended
31 December 2017. Show your workings where necessary
IAS 19 is not examinable in Paper FA.
(And why are you expecting us to answer a test question for you? We provide help with problems that students have while studying – we do not simply provide full answers to full questions!)