Solution-Determine the net plan obligation or asset

Determine the net plan obligation or asset

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Question - The following information is provided in relation to a defined benefit plan operated by Lasco. At 1 January 20X4, the present value of the obligation was $140 million and the fair value of the plan assets amounted to $80 million.

	20X4	20X5
Discount rate at start of year	4%	3%
Current and past service cost ($m)	30	32
Benefits paid ($m)	20	22
Contribution into plan ($m)	25	30
Present value of obligation at 31 December ($m)	200	230
Fair value of plan assets at 31 December ($m)	120	140

Required -

1. Determine the net plan obligation or asset at 31 December 20X4 and 20X5.

2. A reconciliation showing the re-measurement (i.e. actuarial gain/loss) component for 20X4 and 20X5.

3. The amounts to be taken to profit or loss and other comprehensive income for both financial years.

Reference no: EM133087427

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Determine the net plan obligation or asset

Reference no: EM133087427

Reference no: EM133087427

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