Part B only

Question One NDB granted 1,000 share appreciation rights (SARs) to each of its 5,000 employees od 1 July To be eligible for the rights, employees must remain with the entity for 3 years from the grant date The rights can be exercised in the two months following the end of the vesting period, with settiement dus in cash In the year to 30 June 2013, 80 employees left and a further 130 were expected to leave over the following two years The fair value of each SAR was RB at 1 July 2012 and R9 at 30 June 2013. In accordance with IFRS 2 Share-based Payment: prepare the journal entry to record the expense associated with the SARs in NDB's financial statements for the year to 30 June 2013; and 0 () explain how the recognition and measurement of a share-based payment would differ if it was to be settled in equity rather than cash. (5 marks) NDB operates a defined benefit pension plan for its employees. At 1 July 2012 the fair value of the pension plan assets was R14 miion and the present value of the pension plan liabilities was R17 million. The actuary estimated that the relevant discount rate for the year to 30 June 2013 was 6%. The pension plan paid R2 million to retired members and NDB paid R3 million in contributions to the pension plan for the year to 30 June 2013. The actuary estimated that the service cost for the year to 30 June 2013 was R4 million. At 30 June 2013 the fair value of the pension plan assets was R15.5 million and the present value of pension plan liabilities was R19 million. Required: In accordance with lAS 19 Employee Benefits (revised): (0 calculate the net expense that would have been charged in arriving at NDB's profit for the year ended 30 June 2013; and (ii calculate the actuarial gains or losses on pension plan assets and liabilities that would have been included in NDB's other comprehensive income for the year ended 30 June 2013. (5 marks) Question One NDB granted 1,000 share appreciation rights (SARs) to each of its 5,000 employees od 1 July To be eligible for the rights, employees must remain with the entity for 3 years from the grant date The rights can be exercised in the two months following the end of the vesting period, with settiement dus in cash In the year to 30 June 2013, 80 employees left and a further 130 were expected to leave over the following two years The fair value of each SAR was RB at 1 July 2012 and R9 at 30 June 2013. In accordance with IFRS 2 Share-based Payment: prepare the journal entry to record the expense associated with the SARs in NDB's financial statements for the year to 30 June 2013; and 0 () explain how the recognition and measurement of a share-based payment would differ if it was to be settled in equity rather than cash. (5 marks) NDB operates a defined benefit pension plan for its employees. At 1 July 2012 the fair value of the pension plan assets was R14 miion and the present value of the pension plan liabilities was R17 million. The actuary estimated that the relevant discount rate for the year to 30 June 2013 was 6%. The pension plan paid R2 million to retired members and NDB paid R3 million in contributions to the pension plan for the year to 30 June 2013. The actuary estimated that the service cost for the year to 30 June 2013 was R4 million. At 30 June 2013 the fair value of the pension plan assets was R15.5 million and the present value of pension plan liabilities was R19 million. Required: In accordance with lAS 19 Employee Benefits (revised): (0 calculate the net expense that would have been charged in arriving at NDB's profit for the year ended 30 June 2013; and (ii calculate the actuarial gains or losses on pension plan assets and liabilities that would have been included in NDB's other comprehensive income for the year ended 30 June 2013