IAS 19Chapter 4Lesson 1
The obligation, the assets and the net liability (asset)
Step 1 of 8Learning objectives
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What the employer owes under a defined benefit plan: deficit or surplus, the projected unit credit method and attribution of the benefit to years of service.
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Learning objectives
- Explain how the deficit or surplus of a plan and the net liability (asset) are determined.
- Explain the principle of the projected unit credit method and calculate the present value of the attributed benefit.
- Explain that the benefit is attributed to periods of service following the plan's formula.