You are employed as the Senior Accountant of an organisation which offers the conditions of service as described below: (i) The Basic salary for the position of the Accountant is K20,000 (ii) Housing allowance is 30% of the basic salary (iii)Transport allowance is paid at 10% (iv)NAPSA contributions are as per the NAPSA act Additionally the company runs a contributory pension plan where the employer contributes 12% and the employee contributes 6%. There is an unfunded defined benefit scheme in which the employee is paid at the rate of three months for each year served at the exit salary. Mr. Phiri has been in your employment for more than five (5) years and he enjoys the above conditions of service. As at 31 December 2020, Mr. Phiri had worked for the company for five (5) and as at 31 March 2021, his salary was increased by 10% on account of excellent performance. The employers obligations towards Mr. Phiri were recorded at K228, 000 as at 1 January 2021 in the statement of financial position. Required In line with the above information,

1. You are required to;

a. Discuss defined benefit and defined contribution plans in line with IAS 19

b. Differentiate past service cost from current service cost in accordance with IAS 19

c. Calculate the employers obligations as at 31 December 2020 based on the unfunded defined benefit plan

d. Calculate Mr. Phiris employee benefits on the defined benefit scheme as at 31 March 2021

e. Calculate gross monthly emoluments for Mr. Phiri for the month of February 2021

2. Account for the transactions in 1 above