Lego Limited is a company with a $31$ December financial year$-$end. The company has

various employee benefits to reward their employees for their hard work. Details of

some of these benefit transactions are as follows:

Lego Pension Fund

This is a funded plan that all Lego Limited$$s permanent employees belong to$.$ The fund

is classified as a defined benefit fund.

The present value of the defined benefit obligation amounted to R$3122500$ and

R$3200000$ at the end of $2021$ and $2022,$ respectively, and the plan assets' fair value

amounted to R$3190000$ and R$3650000$ at the end of $2021$ and $2022,$ respectively.

The discount rate for $31$ December $2021$ was $12,12\%,$ and for $31$ December $2022,$

$12,25\%.$

Transactions for the $31$ December $2022$ financial year were as follows:

$$ The current service cost amounted to R$255500.$

$$ The contributions amounted to R$592300.$

$$ The benefits paid out by the fund amounted to R$552200.$

Share options

On $1$ January $2022,$ the company granted $10000$ share options to each of the

company$$s $12$ directors. The shares had a fair value of R$17$ each on $1$ January $2022.$

The share options are only available to directors employed by the company on $1$

January $2022.$ The share options have a vesting period of three years and are

conditional upon the directors still being employed with Lego Limited upon the vesting

of the share options.

$9$ HFAC$334-1-$Jan$-$Jun$2023-$SA$1-$CP$-$V$4-02122022$

The share options agreement further stipulated that the shares would vest on:

$31$ December $2022$ if Lego Limited$$s net profit increases by more than $8\%$ for the

$2022$ year.

$31$ December $2023$ if Lego Limited$$s net profit increases by an average of $8\%$ over

the two years $(2022$ & $2023).$

$$ On $31$ December $2024$ if Lego Limited$$s net profit increases by an average of $8\%$

over the three years $(2022,2023$ & $2024).$

By $31$ December $2022,$ one of the company$$s directors resigned and was replaced by

a new candidate. Lego Limited does not expect any of the directors to resign during

the $2023$ financial year.

Based on Lego Limited$$s results for $31$ December $2022,$ the company$$s net profit

increased by $7\mathrm{.}50\%,$ and due to expansion projects underway, the directors expect

the net profit for $31$ December $2023$ to increase by $9\%.$

REQUIRED:

$3\mathrm{.}1$ Present the actuarial gains or losses relating to the Lego Pension Fund in the

Statement of Profit or Loss and Other Comprehensive Income of Lego Limited

for the year ending $31$ December $2022.$ Comparative figures are not required.

Show and reference all your calculations and workings clearly.

$(19$ marks$)$

$3\mathrm{.}2$ Present the Share options in the Statement of Financial Position of Lego

Limited as at $31$ December $2022.$

Comparative figures are not required.

Show and reference all your calculations and workings clearly.