The following information relates to the defined benefit pension plan for Stark Ltd. for 2020. The corporation uses ASPE.

Current service cost

$348,000

Contributions

321,000

Actuarial loss

10,000

Expected & actual return on plan assets

8%

Fair value of plan assets, Jan 1

225,000

Defined benefit obligation, Jan 1

367,000

Interest rate for obligation

9%

Required

Calculate the pension expense to be reported for 2020.10 marks

Prepare the journal entries to record pension expense and the employer's contributions for 2020. 4 marks

What is the pension expense if the company uses IFRS 2marks

Explain briefly the difference between defined benefit and defined contribution plans from the employer perspective 4 marks