AS 19 Employee Benefits is applied to all employee benefits other than those to which FRS 2 Share-based Payment applies. Accounting for short-term employee benefits is relatively straightforward. However, accounting for post-employment benefits can be rather more complex. This particularly applies where post-employment benefits are provided via defined benefit plans. Kappa provides post-employment benefits to its employees through a defined benefit plan. The following data relates to the plan: Year ended 31 March 2019 S'000 36,000 31,000 6,000 8,000 5,800 2018 S'000 Present value of obligation at year end Fair value of plan assets at year end Current service cost 33,000 30,000 5,700 7,500 5,600 Benefits paid by plan Contributions paid into plan Yield on high quality corporate bonds at the start of the year 10% 9% Required Prepare extracts from Kappa's statement of financial position at 31 March 2019 and from its statement of profit or loss and other comprehensive income for the year ended 31 March 2019 relating to the defined benefits plan.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 1: EMPLOYEE BENEFITS

IAS 19 Employee Benefits is applied to all employee benefits other than those to which
IFRS 2 Share-based Payment applies. Accounting for short-term employee benefits is
relatively straightforward. However, accounting for post-employment benefits can be rather
more complex. This particularly applies where post-employment benefits are provided via
defined benefit plans.
Kappa provides post-employment benefits to its employees through a defined benefit plan.
The following data relates to the plan:
Year ended 31 March
2019
$'000
36,000
31,000
6,000
8,000
5,800
2018
$'000
33,000
30,000
5,700
7,500
5,600
Present value of obligation at year end
Fair value of plan assets at year end
Current service cost
Benefits paid by plan
Contributions paid into plan
Yield on high quality corporate bonds at the start of the year
10%
9%
Required
Prepare extracts from Kappa's statement of financial position at 31 March 2019 and from its
statement of profit or loss and other comprehensive income for the year ended 31 March
2019 relating to the defined benefits plan.
Transcribed Image Text:IAS 19 Employee Benefits is applied to all employee benefits other than those to which IFRS 2 Share-based Payment applies. Accounting for short-term employee benefits is relatively straightforward. However, accounting for post-employment benefits can be rather more complex. This particularly applies where post-employment benefits are provided via defined benefit plans. Kappa provides post-employment benefits to its employees through a defined benefit plan. The following data relates to the plan: Year ended 31 March 2019 $'000 36,000 31,000 6,000 8,000 5,800 2018 $'000 33,000 30,000 5,700 7,500 5,600 Present value of obligation at year end Fair value of plan assets at year end Current service cost Benefits paid by plan Contributions paid into plan Yield on high quality corporate bonds at the start of the year 10% 9% Required Prepare extracts from Kappa's statement of financial position at 31 March 2019 and from its statement of profit or loss and other comprehensive income for the year ended 31 March 2019 relating to the defined benefits plan.
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