Question twoKAKA , a public listed company incorporated in Zambia, prepares its financial statements using international financial reporting standards (IFRS). It operates a defined benefit pension plan for its employees. At 1 April 2021 the fair value of the pension plan assets was K3,900,000 and the present value of the pension plan obligations was K4,100,000. The service cost for the year ended 31 march 2022 was K900,000. On 1 April 2017 the pension plan was amended to offer additional benefits to members resulting in past service costs of K200,000. The relevant discount rate for the year ended 31 march 2018 was estimated at 7% and KAKA contributed K950,000 to the plan. The pension plan paid K375,000 to retired members in the year to 31 march 2022. At 31 March 2022 the fair value of the pension plan assets was K5,100,000 and the present value of the pension plan obligations was K3,200,000.Required:Calculate, in accordance with IAS 19 (revised) employee benefits, the following in respect of KAKA s pension plan:i. The expense in the income statement for the year ended 31 March 2018.ii. The amounts that will be included in other comprehensive income for the year ended 31 March 2018. iii. The net pension asset or obligation (stating which) that will be included in the statement of financial positions as at 31 March 2019. iv. Comment on the performance of the pension
Question two
KAKA , a public listed company incorporated in Zambia, prepares its financial statements using international financial reporting standards (IFRS). It operates a defined benefit pension plan for its employees. At 1 April 2021 the fair value of the pension plan assets was K3,900,000 and the present value of the pension plan obligations was K4,100,000. The service cost for the year ended 31 march 2022 was K900,000. On 1 April 2017 the pension plan was amended to offer additional benefits to members resulting in past service costs of K200,000. The relevant discount rate for the year ended 31 march 2018 was estimated at 7% and KAKA contributed K950,000 to the plan. The pension plan paid K375,000 to retired members in the year to 31 march 2022. At 31 March 2022 the fair value of the pension plan assets was K5,100,000 and the present value of the pension plan obligations was K3,200,000.
Required:
Calculate, in accordance with IAS 19 (revised) employee benefits, the following in respect of KAKA s pension plan:
i. The expense in the income statement for the year ended 31 March 2018.
ii. The amounts that will be included in other comprehensive income for the year ended 31 March 2018.
iii. The net pension asset or obligation (stating which) that will be included in the
iv. Comment on the performance of the pension
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