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You are the financial controller of C, a entity which has recently established a pension scheme for its employees. It chose a defi ned benefi

You are the financial controller of C, a entity which has recently established a pension scheme for its employees. It chose a defi ned benefi t scheme rather than a defi ned contribution scheme. C makes payments into the pension scheme on a monthly basis. C p repare fi nancial statements to 31 December each year. On 31 December 20X4 the market value of the scheme’s assets was $20 million and the present value of the scheme’s liability $22 million. Actuarial losses not yet recognised in the income statement amounted to $1.5 million. In 20 X 5 the following data is relevant: 

● current service cost : $2 million, ● unwinding o f discount: $1.8 million, 

● expected return on pension plan assets: $2.4 million, 

● contributions for t he y ear: $1.7 million. On 31 December 20 X 5 the market value of the scheme’s assets was $21 million and the present value of the scheme’s liability $22.5 million. 

C’s accounting policy is to defer actuarial gains and losses to future periods so far as is permissible under the requirements of IAS 19.

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