Murray plc has a defined pension scheme and the following details are provided to you for the year ended 31 December 2018: There is a net defined benefit pension surplus of 200,000 at the start of 2018, made up as follows: Present value of obligation: 1,800,000 Fair value of plan assets: 2,000,000 The following figures are relevant: 2018 Discount rate at beginning of year 10.00% Current service cost 250,000 Past service cost 70,000 Benefits paid to retirees 300,000 Employer contributions 150,000 Present value of obligation at year-end 2,800,000 Fair value of plan assets at year-end 2,200,000

Record the journal entries for the above defined benefit employee benefit scheme for the year ended 31 December 2018. ( 4 marks) (2) Outline how the defined-benefit pension scheme would be shown in the financial statements of Murray plc for the year ended 31 December 2018 in accordance with IAS 19 (Revised), Employee Benefits. (10 marks)

) Defined benefit pension plans represent assets, liabilities and costs for the sponsoring company. The related amounts are not always easy to determine and the impact on a company may be significant. Discuss. (5 marks)

(c) State how the following events, which are considered to be material, and which occurred after the date of the statement of financial position but before the authorisation of the financial statements, should be treated in accordance with IAS 10, Events after the Reporting Period by Ringrose plc. Ringrose plc has a year end of 31 December 2018

. 1. On 20 December 2018, Ringrose plc was involved in a court case with a customer who sued the company for delivering products where there was a dispute over the exact ingredients included in the products manufactured by Ringrose plc. These products were delivered to the customer in October 2015. The details of the case were heard by 22 December 2018 but the judge decided to reserve her judgement until 9 January 2016. On 9 January 2019, the judge ruled in favour of the customer awarding it damages of 100,000. (2 marks)

2. Ringrose plc has an investment worth 950,000 in its financial statements at 31 December 2018. Due to a recession, the investment reduced in value to 850,000 by 15 January 2019. (2 marks)

3. On 10 January 2018, Ringrose plc sold some inventory for 65,000. The inventory had been included in the year-end inventory count at a cost of 85,000. (2 marks)