Average age of employees of a company is 56 years the retirement age is 60 years. Defined benefit plan introduced in the current year envisages payment of extra retirement benefit equal to 5% of the last salary drawn for each year of service put in by the employee from the date of commencement of scheme till the date of retirement. The present salary bill of the company is ₹20 lakh per annum, which is likely to increase to ₹40 lakhs by the end of four years from now. The appropriate discount rate is 10% p.a. Show how this is to be recognized as liability in the annual accounts during this period.