IAS 19, Employee Benefits, was issued in February 1998. Amongst other things, the Standard deals with the treatment of post-employment benefits such as pensions and other retirement benefits.
Post-employment benefits are classified as either defined contribution or defined benefit plans.

Klondike operates a defined benefit post-retirement plan for its employees. The plan is reviewed annually. Klondike's actuaries have provided the information in the table above.
The average remaining working lives of Klondike's employees at 31 March 2001 is ten years.
Required:
(a) Describe the relevant features and required accounting treatment of defined contribution and defined benefit plans under IAS 19.
(b) Prepare extracts of Klondike's financial statements for the year to 31 March 2002 in compliance with IAS 19, Employee Benefits, insofar as the information permits.

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Klondike at 31 March 2001 $000 1 500 1 500 at 31 March Present value obligation Fair value of plan assets Current service cost year to 31 March 2002 Contributions paid year to 31 March 2002 Benefits paid to employees year to 31 March 2002 Net cumulative unrecognized gains at 1 April 2001 Expected return on plan assets at 1 April 2001 is Discount rate for plan liabilities at 1 April 2001 2002 $000 1 750 1 650 160 85 125 200 12% 10%