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Hi tutor,
Thanks fou ur help.
I have a question regrading the pension plan answer for this question
In my kaplan kit in answer there is ..
Contributions (2)
I didnt understand this figure+ they didnt include 3 m of employee benefit paid..
Am not sure about these points thanks
Hi,
I’ve not got the Kaplan materials but the contributions will DR Pension CR Bank. As the scheme was a net liability at the start of the year then this will reduce the liability (presumably the liability in the answer is a positive figure).
The benefits paid DR P. Liability CR P. Asset and so there is no net movement on the scheme because of the benefits paid, so they’ve made no adjustment.
I think the answer may be more confusing than normal as instead of dealing with the asset and liability separately, they’ve combined the calculation and looked at the net pension position at the start and end of the year to work out the total remeasurement component.
Hope this helps.
Thanks
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