Northern plc prepares its financial statements to 31 December each year and has operated a defined benefit pension scheme for many years. At 31 December 2013, the present value of the defined benefit obligation was calculated at 45m and the fair value of the plan assets was 43.8m. The following information relates to the year ended 31 December 2014: a) Expected return on plan assets was 4.6m but actual return was 5.4m. b) Northern plc made contributions of 7.6m into the plan. Employees contributed a further 3m. c) The plan paid out benefits to past employees amounting to 3.8m. d) The present value of the current service cost for the year (before deducting employee contributions) was 7.4m. e) At December 2014, the present value of the defined benefit obligation was calculated at 54.8m and the fair value of the plan assets was 56.4m. A discount rate of 8% should be used in calculating the interest cost for the year. Required Calculate the defined benefit expense which should be recorded in the entity's income statement for the year ended 31 December 2014 and the defined benefit liability or asset which should be recorded in the balance sheet at that date. Also reconcile the expense for the year to the employer contributions made during the year. 23%