P2 COURSE EXAM1 ACCA

eBe pdf.pdf X + X O A O file:///C:/Users/GREAT/Downloads/pdf.pdf . . . ended 30 September 20X1. (Total = 25 marks) Question 2 Question text as on Pennsylvania, a public limited company, set up a funded defined benefit pension plan for its employees many years ago, The plan provides a pension based on 1/80" of the final salary for each year worked for the company. The following information has been provided by the actuary for the year ended 30 September 20X7: (a) The present cost in terms of future pensions of employee service during the year is $90m. This has been determined using the projected unit credit method. (b) The present value of the obligation to provide benefits to current and former employees has been the same date. calculated as $2,280m at 30 September 20X7 and the fair value of plan assets was $2,270m at (c) The market yield on high quality corporate bonds of a similar maturity to the pension obligations relevant to the year was 5%. The following has been extracted from the financial records: (a) The present value of the defined benefit obligation was $2,100m at 30 September 20X6 and the fair value of the plan assets was $2,200m at the same date. (b) Pensions paid to former employees during the year amounted to $70m. (c) Contributions paid into the plan during the year as decided by the actuary were $88m. With effect from 1 October 20X6, the company amended the plan to increase pension entitlement for employees. The additional cost of improvement in benefits was calculated by the actuary to be approximately $60m at 1 October 20X6. Required (a) Prepare the notes to the statement of profit or loss and other comprehensive income and statement of financial position required by IAS 19 Employee Benefits for the defined benefit pension plan of Pennsylvania. Ignore any deferred tax effects and assume that pension payments and the contributions into the plan were paid on 30 September 20X7. (16 marks) (b) Discuss critically the conceptual basis for the presentation and recognition of remeasurements of defined benefit pension plan assets and obligations and past service costs in the statement of profit or loss and other comprehensive income (7 marks) Professional marks will be awarded in part (b) for clarity and expression (2 marks) Type here to search O e 9 A ENG 6:35 PM US 8/22/2019