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post-employment benefits based on final salary

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › post-employment benefits based on final salary

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.
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  • May 19, 2021 at 6:16 am #620999
    Noah098
    • Topics: 936
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    • ☆☆☆☆☆

    sir if the benefits payable are linked to final salaries then how does that create a potential plan deficit?

    May 19, 2021 at 3:49 pm #621068
    Stephen Widberg
    Moderator
    • Topics: 10
    • Replies: 2557
    • ☆☆☆☆☆

    If liabilities of plan at any point time are less than its assets – i.e. if the company has not made enough contributions to the plan.

    In pension questions, you are not the actuary, so all we have to do is copy the numbers into P&L, SFP or OCI

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