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?
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SEPTEMBER DECEMBER 2020 past paper Q4
4y ago#1FUTURE 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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