Northern plc prepares its financial statements to 31 December each year and has operated a defined benefit pension scheme for many years. At 31 December 2008, the present value of the defined benefit obligation was calculated at EUR 45m and the fair value of plan assets was EUR 43.8m. The following information relates to the year ended 31 December 2009: 

(a) Expected return on plan assets was EUR 4.6m but actual returns was EUR 5.4m. 

(b) Northern plc made contributions of EUR 7.6m into the plan. Employees contributed a further EUR 3m. 

(c) The plan paid out benefits to past employees amounting to EUR 3.8m. (d) The present value of the current service cost for the year (before deducting employee contributions) was EUR 7.4m.

(e) At 31 December 2009, the present value of the defined benefit obligation was calculated at EUR 54.8 million and the fair value of plan assets was EUR 16.4 million. 

A discount rate of 8 per cent should be used in calculating the interest cost for the year. 

Calculate the defined benefit expense which should be recorded in the entity’s income statement for the year ended 31 December 2009 and the defined benefit liability or asset which should be’recorded in the balance sheet at that date. Also reconcile the expense for the year to the employer contributions made during the year.