Bright Bhd is a public limited company and would like advice in relation to the following transactions. Bright Bhd operates a defined benefit scheme for its employees. At June 2020, the net pension liability recognized in the statement of financial position was $15 million, excluding an unrecognized actuarial gain of $10 million which Bright Bhd wishes to spread over the remaining working lives of the employees. The scheme was revised on 1 June 2020.

This resulted in the benefits being enhanced for some members of the plan and because benefits do not vest for these members for five years, Bright Bhd wishes to spread the increased cost over that period. However, part of the scheme was to be closed, without any redundancy of employees. Bright Bhd requires advice on how to account for the above scheme including the presentation and measurement of the pension expense.

REQUIRED:

(a)        Discuss on the above event and justify the appropriate accounting treatment that should be apply by Bright Bhd. Appropriate examples and quotes from the relevant standard is expected to support your arguments.                                                                                 

(b)      Agricultural activities are distinguished by the fact that management facilitates and manages biological transformation and is capable of measuring the change in the quality and quantity of biological assets. Management of biological transformation normally takes the form of activity to enhance, or at least stabilize, the conditions necessary for the

process of growth, degeneration, production and procreation that cause qualitative or quantitative changes in a biological asset to take place.

REQUIRED:

Discuss on the principles of IAS 41 Agriculture with regard to the rationale and how the biological assets are measured using fair value, also on the circumstances where an entity can depart from using fair value.