- September 23, 2021 at 3:31 am #636341zony123Member
- Topics: 27
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TC has a defined benefit pension plan and prepares financial statements to 31 March each year. The following information is relevant for the year ended 31 March 20X3:
1. The net pension obligation at 31 March 20X3 was $55 million. At 31 March 20X2, the net obligation was $48 million, comprising the present value of the plan obligation stated at $100 million, together with plan assets stated at fair value of $52 million.
2. The discount rate relevant to the net obligation was 6.25% and the actual return on plan assets for the year was $4 million.
3. the current service cost was$12m.
4. At 31 march 20X3, TC granted additional benefits to those currently receiving benefits that are due to vest over the next four years and which have a present value of $ 4m at that date. They were not allowed for in the original actuarial assumptions.
sir can you please tell me how solve 4th point here why we charge 4m directly and not apportioned between 4 years?September 23, 2021 at 5:40 pm #636375Stephen WidbergKeymaster
- Topics: 11
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Looks like a past service cost – in this case expense immediately – rule changed about 5 years ago.
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