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Traveler pension plan dec 2011

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Traveler pension plan dec 2011

  • This topic has 3 replies, 2 voices, and was last updated 11 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • April 29, 2014 at 10:47 pm #166815
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Sir I really need your help.I know you earlier explained a bit of this adjustment .But can you please explain me this complete adjustment of pension plan,I am really not clear about this topic.First of all is the surplus of 72 liability or assets for Traveler and then again why figure 55 n 25 are credited n 45 dr where and how all entries will be done. Many thanks

    April 30, 2014 at 5:35 pm #166923
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    Student07, substantially all the double entries go from the pension plan accounts (present value of future obligations account, fair value of plan assets account, past service costs account) to the statement of income

    I believe that there is a lecture on this site for IAS 19. have you checked it out? And you still have problems?

    If so, post again and I’ll look up the question and try to answer you more fully

    May 1, 2014 at 9:56 am #166995
    student07
    Member
    • Topics: 193
    • Replies: 162
    • ☆☆☆

    Sir I did check the lecture but still not very clear.Am I right that $25 is loss so need to be reduced and same for $ 55 because its the net interest cost so also need to be deducted ,contribution of $45 is made so need to be added. Impairment loss n assets ceiling also I understood, but the I am not clear about these double entries.

    May 4, 2014 at 7:04 pm #167427
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    The only figure for 25 that I can see is the 10% of the fair valued assets and that has nothing to do with being double entered. It’s an historic approach used in pension fund accounting called the “10% corridor approach” AND IT NO LONGER APPLIES

    $55m and $45m affect the net pension fund asset (the 72m brought forward is a net pension fund asset) by reducing the 72 and increasing the 72 respectively

    The double entry for $55m is shown in working 5 Retained Earnings of the examiner’s answer

    The double entry for the $45m is shown in working 6 Current Liabilities of the examiner’s answer

    Does that do it for you?

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