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dear Sir,
I watched the SBR lectures re employee benefits and have the following questions;
1. interest on defined benefit obligation
in simple scenario interest is calculated as % * opening balance. however, there are instances where interest is calculated as & * opening balance – benefits paid. could you kindly clarify when to use what?2. interest on plan assets
in simple scenario interest is charged as % * opening balance of plan assets. however, there are instances when this is calculated as % * opening balance of plan assets + contribution – benefits paid. could you kindly clarify when to use what?
thanks a lot
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