Chapter 8

Question 1

Standard on employee benefit

Answer 1

If a defined benefit scheme has a surplus, the net pension asset should be measured at lower of:
* The surplus of the plan (CA)
* The asset ceiling (PV of future refund / future reduction in contribution)

Question 2

FV of PA > PV of Defined Benefit Obligation

Answer 2

Perform asset ceiling test - reduction in contribution in future

Net PA > Asset ceiling —> recognise loss in OCI