Eq Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June 2021. Fair value of plan assets (1 July 2020) $94 356 000 Fair value of plan assets (30 June 2021) $95 832 000 Present value of defined benefit obligation (1 July 2020) $98 586 000 Present value of defined benefit obligation (30 June 2021) $103 392 000 Benefits paid $15 552 000 Contributions received $8 640 000
Eq Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June 2021.
Fair value of plan assets (1 July 2020) $94 356 000
Fair value of plan assets (30 June 2021) $95 832 000
Present value of defined benefit obligation (1 July 2020) $98 586 000
Present value of defined benefit obligation (30 June 2021) $103 392 000
Benefits paid $15 552 000
Contributions received $8 640 000
Current service cost $12 096 000
Discount rate (1 July 2020) 5.0%
Discount rate (30 June 2021) 4.0%
In July 2020 the plan was amended to increase superannuation benefits for each year of service starting on 1 July 2016. The present value of the additional superannuation benefits for service from 1 July 2016 to 1 July 2020 is $6 912 000.
Required:
As at 30 June 2021, Eq Ltd should recognise the net defined benefit as (1) with a balance of (2).
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A. |
(1) an asset; (2) $1,476,000 |
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B. |
(1) a liability; (2) $7,560,000 |
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C. |
(1) a liability; (2) $3,330,000 |
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D. |
(1) a liability; (2) $4,806,000 |
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