Mawar Berhad has a defined benefit pension plan for its employees. On 1 July 2020 the fair value of the pension plan assets was RM14 million and the present value of the pension plan liabilities was RM17 million.

Mawar Berhad paid RM3 million in contributions to the pension plan and the pension plan has paid RM2 million to retired members for the year to 30 June 2021. The actuary estimated that the service cost for the year to 30 June 2021 was RM4 million.

As at 30 June 2021 the fair value of the pension plan assets was RM15.5 million and the present value of pension plan liabilities was RM19 million.

The actuary estimated that the relevant discount rate for the year ended 30 June 2021 was 6%.

Required:

(i) Calculate the net expense that would have been charged in profit or loss statement for the year ended 30 June 2021.

(ii) Calculate the actuarial gains or losses on pension plan assets and liabilities respectively for the year ended 30 June 2021.

(iii) Show journal entries to recognise net actuarial gain or loss and contribution respectively to the plan. (20 marks)