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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 19- EMPLOYEE BENEFITS
Dear Sir,
After following the lectures re IAS 19, i am encountering the following problems;
Interest on contribution: could you kindly clarify when the interest on contribution is worked out as % * opening balance of defined plan asset and when it is worked out as % * opening balance of defined plan asset +contribution – benefits paid
Interest on obligation: when this is worked out as % * opening balance and when it is worked out as % * Opening balance – benefits paid.
Thank you
AM
Hi,
It depends on when the contribution is paid. If it paid at the start of the year then we will need to accrue the return on it, and if it is paid at the end of the year then it is not necessary to accrue and return on it as it won’t have had the opportunity to get any return given it was made at the end of the reporting period.
Thanks