INSTRUCTIONS: ANSWER ALL QUESTIONS ON THE QUESTION PAPER 1. Tota, a private listed company incorporated in Zambia, prepares its financials tatements using International Financial Reporting Standards (IFRS). It operat es a defined benefit pension plan for its employees. At 1 January 2018 the fa ir value of the pension plan assets was K2, 700,000 and the present value of t he pension plan obligations was K3,000,000. The service cost for the year ended 31 December 2018 was K650,000. On 1 Jan uary 2018 the pension plan was amended to offer additional benefits to member s resulting in past service costs of K200,000. The relevant discount rate for the y ear ended 31 December 2018 was estimated at 5% and Tota paid K950,000 in c ontributions to the plan. The pension plan paid K320,000 to retired members int he year to 31 December 2018. At 31 December 2018 the fair value of the pension plan assets was K3, 600,000 and the present value of the pension plan obligations was K3, 800,000 Required: (a) Distinguish between a defined contribution plan and a defined benefit plan. (5 marks) (b) Calculate, in accordance with IAS 19 (revised) Employee Benefits, the followin g in respect of Tota's pension plan: The expense in the income statement for the year ended 31 December 2018. (5 marks) ) The amounts that will be included in other comprehensive income for the yea rended 31 December 2018. (2 marks) (iii) The net pension asset or obligation (stating which) that will be included in th e statement of financial position as at 31 December 2018. (2 marks)