Super Bhd is a public limited company and would like advice to the following transactions. Super Bhd operates a defined benefit scheme for its employees. At June 2020, the net pension liability recognised in the statement of financial position was $15 million, excluding an unrecognised actuarial gain of $10 million which Super Bhd wishes to spread over the remaining working lives of the employees. The scheme was revised on 1 June 2020.

This resulted in the benefits being enhanced for some members of the plan, and because benefits do not vest for these members for five years, Super Bhd wishes to spread the increased cost over that period. However, part of the scheme was to be closed, without any redundancy of employees. Super Bhd requires advice on how to account for the above scenario, including the presentation and measurement of the pension expense.

Discuss the above event and justify the appropriate accounting treatment that should be applied by Super Bhd. Suitable examples and quotes from the relevant standard are expected to support your arguments. (10 marks)