Scharf Limited has a defined benefit pension plan. The following information relates to this plan:

Required:
1. Calculate pension expense for \(20 \times 1\), and the closing balance of the recorded accrued pension asset. Reconcile the recorded pension asset balance to the assets and defined benefit obligation of the pension plan. The company uses the \(10 \%\) corridor method for actuarial gains and losses.
2. Does the statement of financial position reflect the economic position of the plan? Comment.
3. Describe the note disclosures that the company is required to include with respect to this plan.
4. Calculate pension expense assuming that the company recognizes all the actuarial gains and losses in reserves, with the annual change included as an element of other comprehensive income. There are no opening unrecognized amounts in this case, and, at the beginning of \(20 \mathrm{X} 1\), there is a \(\$ 65,400\) accrued pension liability. Cumulative reserves have a debit balance of \(\$ 117,900\) with respect to the pension. What are the closing SFP balances? Does the SFP reflect the economic position of the plan? Comment.

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Accrued pension asset, 1 January $ 52,500 Defined benefit pension obligation, 1 January ?? Actuarial loss on change in assumptions, arising during 20X1 16,000 Actual return on plan assets for 20X1-loss 2,000 Unrecognized actuarial loss, 1 January 117,900 Increase in defined benefit pension obligation due to new past service cost, new on 1 January (begin amortization in 20X1) 25,000 Fair value of plan assets, 1 January 244,000 Current service cost for 20X1 19,200 Plan contribution for 20X1 Benefits paid in 20X1 Expected rate of return on plan assets Interest rate on long-term debt Average remaining service period Vesting period for past service cost 24,000 7,000 4% 4.5% 16 years 5 years