Question
Question 1 A company that makes an annual contribution of P 500 000 per annum identified a surplus of P1 500 000. The estimated service
Question 1
A company that makes an annual contribution of P 500 000 per annum identified a surplus of P1 500 000. The estimated service lives of current employees is 12 years. The actuary recommends the following options:
- A contribution holiday of 4 years
- A lump sum refund to the employer
- Pay employees higher pensions
Required: Accounting treatment under each of the three options recommended by the actuary
Question 1
A company that makes an annual contribution of P 500 000 per annum identified a surplus of P1 500 000. The estimated service lives of current employees is 12 years. The actuary recommends the following options:
- A contribution holiday of 4 years
- A lump sum refund to the employer
- Pay employees higher pensions
Required: Accounting treatment under each of the three options recommended by the actuary
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