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SEPTEMBER DECEMBER 2020 past paper Q4

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › SEPTEMBER DECEMBER 2020 past paper Q4

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Stephen Widberg.
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  • September 3, 2022 at 10:16 pm #665054
    murza
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    I have a question regarding the defined benefit scheme. in Defined benefit pension scheme, the actuarial gain/loss and the remeasurement components go to OCI. However, based on the answer of Question 4 of the Sep/Dec 2020 exam, the “The treatment for these payments is similar to a defined benefit pension scheme, but the difference is that any actuarial gains or losses are recognised immediately and not in other comprehensive income as Handfood Co does at present. Any service costs, net interest and remeasurements should all be recognised in profit or loss.” So it means that for defined benefit pension scheme, actuarial gain/loss and remeasurement components should go to P/L instead of OCI?

    September 4, 2022 at 6:27 pm #665136
    Stephen Widberg
    Keymaster
    • Topics: 16
    • Replies: 3432
    • ☆☆☆☆☆

    FUTURE POSTS – USE TOPIC NOT QUESTION NAME PLEASE

    The plan in the question is NOT a pension plan – it’s a plan for other long term benefits (e.g. sickness). In these plans remeasurement difference goes to P&L.

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