Fenerty Fabrics has a defined benefit pension plan that arose in \(20 X 3\). The following information relates to the plan:

Required:
1. What alternatives does Fenerty have to account for its actuarial gains and losses? Explain.
2. For each year, what amount would be included in pension expense if actuarial gains and losses were recognized in the year that they arose?
3. Calculate the amount of actuarial gain and loss that should be included in pension expense each year, assuming that the company follows the practice of amortizing actuarial gains and losses to pension expense when the amount is outside the \(10 \%\) corridor. Note that the amortization is based on opening cumulative balances.
4. Prepare a schedule of unamortized actuarial gains and losses for carryforward, assuming that the company follows the accounting policy in requirement (3).

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(in $ thousands) 20X3 20X4 20X5 20X6 20X7 Plan assets (31 December) $500 $260 $320 $350 $200 Defined benefit obligation (31 December) 450 410 360 330 356 New actuarial (gains)/losses arising in year (46) 16 (45) ARSP (years) 15 9 11 22 12 21 (4) 12 10