Q4 (c) (ii) March 2020 - Paper Based SBR Exam

They are reconciling the NET pension liability - so contributions will be a deduction in the working when you are proving the remeasurement difference for OCI

HI Stephen, Thank you for your reply. I do understand that the accounting entry for contributions paid into the pension scheme by the employer Ecoma Co, is Cr Bank $10m, Dr Net Pension Obligation $10m. So, as the question stated that the "These payments had been recorded in the financial statements", my impression was that the debit of $10m was already reflected in the closing net pension obligation of $78, and hence did not need to be shown when reconciling the opening and closing net pension obligations? Liam

You are trying to prove the remeasurement difference - contributions is one reason why the opening and closing net liability are different - so it's always needed in the calculation

Hi Stephen, Could you kindly explain how they came about the net pension obligation at 30 September 20x5 of $24.0 in the solution to Ecoma Co. The question gave the net pension obligation at 30 September 20x5 at $78. Thank you.

Looking at the version on the ACCA website both the question and the answer show 78. If your version says 24, go with the official answer.

PS Please refer to the TOPIC not the question name in thread headers.

Thank you very much Stephen.

:)