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Zimmer plc operates a defined-benefit pension plan for all employees who commenced employment with the company on or before 1 January 2011. At 31 December

Zimmer plc operates a defined-benefit pension plan for all employees who commenced employment with the company on or before 1 January 2011. At 31 December 2020, Zimmer plc had included a defined-benefit obligation of 2.6 million in its statement of financial position. This comprises:

000

Present value of defined-benefit obligation 8,400

Fair value of defined benefit assets 5,800

Defined benefit obligation 2,600

The following information relates to the year ended 31 December 2021:

2021

Discount rate at beginning of year

5.00%

Current service cost

570,000

Past service cost

97,000

Benefits paid to retirees

460,000

Employer contributions

350,000

Present value of obligations at 31 December

9,507,000

Fair value of defined benefit assets at 31 December

5,172,000

Required

Record the T accounts and journal entries for the above defined benefit employee benefit plan.

Outline how the defined-benefit pension scheme would be shown in the financial statements of Zimmer plc for the year ended 31 December 2021 in accordance with IAS 19, Employee Benefits.

What is the required accounting treatment for a past service cost in a defined benefit pension scheme?

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