Question 4 a) IAS 19 Employee Benefits (amended 2011) deals with accounting for pensions. Briefly explain the principles behind a Defined Contributions Scheme and a Defined Benefits Scheme. (4 marks) b) Discuss the problems companies are facing in providing Defined Benefit plans for their employees in relation to the assumptions and estimates that have to be made in relation to the employees' pension obligations. (8 marks) ..Zhang plc operates a Defined Benefits pension scheme. The following information relates to the scheme for the financial year ended 31 December 2020: At 1 January At 31 December 2020 000 9,450 10.158 2020 E000 11.250 12 576 Fair value of plan assets Present value of obligation Discount rate 893 78 For the year ended 31 December 2020: 000 Contributions paid by entity into the plan Current service cost 240 Past service cost Benefits paid out to plan members 255 450 The company's financial statements are in accordance with the IAS 19 Employee Benefits (amended 2011), and it uses a discount rate of 8% on its pension obligations, as well as the expected return on its pension fund assets. Required: Applying the requirements of the revised IAS 19 (2011), show the amounts that will be recognised in: 1. The change in the NET pension obligation as at 31 December 2020. (10 marks) 2. The Statement of Comprehensive Income and Other Comprehensive Income for Zhang plc for the year ended 31 December 2020. (6 marks) 3. The net pension liability in the Statement of Financial Position as at 31 December 2020. (2 marks) (TOTAL 30 MARKS)