Determine the actuarial gain or loss

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Entity D has established a defined benefit plan for its workforce. Relevant details are as follows:

i)The net defined benefit obligation at 31 March 2019 was £5 million.

ii)The net defined benefit obligation at 31 March 2020 was £8 million.

iii)The current service cost for the year ended 31 March 2018 was £10 million.

iv)The contributions paid by Entity D into the plan during the year ended 31 March 2020 were £9 million.

v)The benefits paid out by the plan to retired members during the year ended 31 March 2020 were £4 million.

vi)On 1 April 2019, the relevant discount rate for both the plan and obligation is 5%.

Question 1: Determine the actuarial gain or loss from the defined benefit plan.

Reference no: EM132569274

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