Summary- Pensions

Question 1

Proforma for calculation

Answer 1

OB(Given inQ)
Benefits - CR Asset , DR liability

Increased Assets- DR Asset (OB*Discount rate)
Service Costs CR

Contributions- DR Asset

Unrecognised(Balancing figure)

Interest Cost CR(OB*Discount rate)

Total Cost

CB(Given inQ)

Question 2

Impact on FS

Answer 2

PL
* Service Cost
* Net Interest(Interest Costs -Increased Assets)

OCI
Re-measurement = Balancing figures

SFP
Net pension Asset/Liability- Given in Q. This is closing balance.

Adjustment will generally go through BS and through to PL.