The following information relates to the defined benefits pension scheme of BGA, a listed entity.
The present value of the scheme obligations at 1 November 2006 was $18 360 000, while the fair value of the scheme assets at that date was $17 770 000. During the financial year ended 31 October 2007, a total of $997 000 was paid into the scheme in contributions. Current service cost for the year was calculated at $1 655 000, and actual benefits paid were $1 860 300. The applicable interest cost for the year was 6.5% and the expected return on plan assets was 9.4%.
The present value of the scheme obligations at 31 October 2007 was calculated as $18 655 500, and the fair value of scheme assets at that date was $18 417 180.
BGA adopts the '10% corridor' criterion in IAS 19, Employee Benefits, for determining the extent of recognition of actuarial gains and losses. The average remaining service life of the employees was 10 years. Net unrecognized actuarial losses on 1 November 2006 were $802 000.
Required:
(a) Calculate the actuarial gain or loss on BGA's pension scheme assets and liabilities for year ended 31 October 2007.
(b) Calculate the extent to which, if at all, actuarial gains or losses should be recognized in BGA's income statement for the year ended 31 October 2007, using the '10% corridor' criterion.