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i. With reference to international accounting standard (IAS19) Employee benefit briefly explain the accounting treatment of the defined benefit pension surplus(plan asset) in the financial

i. With reference to international accounting standard (IAS19) Employee benefit briefly explain the accounting treatment of the defined benefit pension surplus(plan asset) in the financial statement of employer
ii. W limited a public limited company operates definedbenefit pension plan for its employee. The present value of the future benefit obligation as at 1st January 2018 was N$ 3,080,000 and the fair value of the plan assets as at the same date was N$2,860,000

Further information relating to the pension plan for the year ended 31st December 2018 was as follows:

Amount in N$ million

Current service 209

Benefit paid to former employees 242

Contribution paid into the plan 259

Present value of the benefit obligations as at 31st December 2018 3,360

Fair value of plan assets as at 31st December 2018 3,113

Additional information

1. Interest cost(gross yield on blue chip corporate bond)is at 5%
2. On 1st January 2018, the pension plan was amended to provide enhancement benefit with effect from that date. The present value of the enhancement as at 1st January 2018 was calculated by actuaries at N$110,000,000

Required:

The required notes to the statement of comprehensive income and the statement of financial position to reflects the financial effects of the defined benefit plan in the year ended 31st December 2018

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