(a) Short-term employee benefits

In December 2x10 a problem with the payroll system in one of the Campbell Group subsidiaries, Auto Limited, has meant that no record of payroll costs has been made for the entire month. Details of the wages ane salaries in that subsidiary for December are as follows:

million

Wages and salaries (net) 10.4

PAYE 3.6

Employer's PRSI 1.1

Holiday pay 0.8

Medical insurance provided for staff 0.6

Total 16.5 (Note 1)

Note I: 1.2 million relates to costs incurred in the construction of a new factory extension. With the exception of wages and salaries of 10.4 million, none of the above amounts were paid at 31 December 2x10.

The Campbell Group also pays an annual staff bonus of 2,000 to all employees who provide a minimum of ten months of service during the year, and who are employees of the Group at 31 December. Auto Limited had a total of 1,000 employees at 31 December 2x10, of whom 900 had worked 10 months or more during the year.

(b) Post-employment benefits

(i) Defined contribution plan

The Campbell Group operates a defined contribution pension plan for employees who commenced employment with the Group on or after 1 January 2x07. Under the plan, post-employment benefits will be based on the returns on employer and employee contributions.

Required contributions for the Campbell Group for the year ended 31 December 2x10 amounted to 120 million, of which 25 million was outstanding at the year end. Employee contributions for the same period were 40 million, which have been paid in full.

No accounting entries have been made in respect of these contribution.

(c) Defined benefit plan

The Campbell Group operates a defined benefit pension plan for employees who commenced employment with the Group prior to the 1 January 2x07. The pension scheme is non-contributory. At 31 December 2x09, the Campbell Group recorded a defined benefit liability of 600 million, comprising the following items:

million

Present value of defined benefit obligation 1,680

Fair value of plan assets 1,080

Defined benefit liability 600

The following information relates to the year ended 31 December 2X10 :

million

Employer contributions paid on 31 December 2x10 400

Benefits paid on 31 December 2X10 150

Current service cost 390

Present value of defined benefit obligation at year end 2,300

Fair value of assets of plan at year end 1,650

The average yield on relevant corporate bonds was 4% on 1 January 2X10.

No accounting entries have been made in the year ended 31 December 2X10.

For the Campbell Group case based on IFRS, make an analysis:

Accounting treatment for short-term employee benefits. Make related journals for year 2X10.

For defined contribution plans, calculate how much expense is recognized per year 2X10, and how many liabilities are reported in the Statement of Financial Position per 31 December 2X10.

For defined benefit obligations, calculate how much expense is recognized per year 2X10, and how much liability is recognized in the statement of financial position as of December 31 2X10.