EMPLOYEE BENEFITS

1) Moore operates a defined benefit scheme for its employees but has yet to record anything for the current year except to expense the cash contributions which were $18 million. The opening position was a net liability of $45 million which is included in the non-current liabilities of Moore in its draft financial statements. Current service costs for the year were $I5 million and interest rates on good quality corporate bonds fell from 8% at the start of the year to 6% by 31 March 20X8. In addition, a payment of $9 million was made out of the cash of the pension scheme in relation to employees who left the scheme. The reduction in the pension scheme liability as a result of the curtailment was $12 million. The actuary has assessed that the scheme is in deficit by $51 million as at 31 March 20X8. REQUIRED Calculate the gain/loss on re-measurement of the defined benefit pension net liability of Moore as at 31 March 20X8, and state how this should be treated (16 marks)