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Hi Sir Chris!
Just want to ask about net pension liability. In June 2015 it was shown in Group RE and non current liability but in June 2013 it was only shown in non current liability.
Should it be reflected in both RE and NCL or just NCL? How come sometimes it’s shown in both and sometimes just in NCL?
Thanks!
Hi Sir Chris!
Just to clarify the above question:
Some liabilities like note 4 of june 2011 long term bonus scheme for employees resulted to .65 ( this is deducted from R.E. And added to NCL)
However in Sept/Dec2015, pensions in note 5 for example, service costs, interest expense etc are only deducted from R.E. And not added on NCL? How come?
Thanks and hope to hear from yah! Have a great weekend! ?
Hi,
The weekend was fun thanks. I hope you got some good revision done.
If you have an adjustment in the SFP then you will need to process a double entry. If you look carefully at the answer for June’13 I think you will find that there is an entry in group retained earnings for 1.1, similar to what has been done in the June’15 paper.
In the Sept/Dec’16 exam we don’t need to process a full double entry as we are only looking at one side of the entry through profit or loss. If we were looking at the SFP then the other side of the entry would have been through NCL.
Hope that helps.
Thanks
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