FWB plc operates a defined benefit pension plan for its employees. The directors of FWB plc have adopted the revised provisions of IAS 19 (R) Employee Benefits. At 1 April 2013 the fair value of the pension plan assets was £2,700,000 and the present value of the pension plan obligations was £3,000,000. The service cost for the year ended 31 March 2014 was £650,000. On 1 April 2013 the pension plan was amended to offer additional benefits to members resulting in past service costs of £200,000. The relevant discount rate for the year ended 31 March 2014 was estimated at 5% and FWB plc paid £950,000 in contributions to the plan. The pension plan paid £320,000 to retired members in the year to 31 March 2014. At 31 March 2014 the fair value of the pension plan assets was £3,600,000 and the present value of the pension plan obligations was £3,800,000. REQUIRED: a) Prepare, in accordance with IAS 19 (revised) Employee Benefits, the pension extracts in the income statement and statement of financial position for the year ended 31 March 2014.
FWB plc operates a defined benefit pension plan for its employees. The directors of FWB
plc have adopted the revised provisions of IAS 19 (R) Employee Benefits.
At 1 April 2013 the fair value of the pension plan assets was £2,700,000 and the present
value of the pension plan obligations was £3,000,000.
The service cost for the year ended 31 March 2014 was £650,000. On 1 April 2013 the
pension plan was amended to offer additional benefits to members resulting in past service
costs of £200,000. The relevant discount rate for the year ended 31 March 2014 was
estimated at 5% and FWB plc paid £950,000 in contributions to the plan. The pension plan
paid £320,000 to retired members in the year to 31 March 2014.
At 31 March 2014 the fair value of the pension plan assets was £3,600,000 and the present
value of the pension plan obligations was £3,800,000.
REQUIRED:
a) Prepare, in accordance with IAS 19 (revised) Employee Benefits, the pension extracts
in the income statement and
2014.
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