{"entries":[{"key":"LX.IAS19.000001","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"CATEGORY_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS19.000001","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"example"},"references":["IAS 19 §11","IAS 19 §153","IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"Classify each Aldoran SA benefit (case facts) in its category.","es":""},"explanation":{"fr":"","en":"Service of the year settled within twelve months is short-term; the pension follows employment; an award not settled within twelve months is long-term; the payment triggered by the departure is a termination benefit (IAS 19).","es":""},"common_error":{"fr":"","en":"Classifying by the name of the benefit rather than the timing of settlement.","es":""},"format":"CLASSIFICATION","categories":[{"id":"st","text":{"fr":"","en":"Short-term","es":""}},{"id":"pe","text":{"fr":"","en":"Post-employment","es":""}},{"id":"ol","text":{"fr":"","en":"Other long-term","es":""}},{"id":"tb","text":{"fr":"","en":"Termination","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"December salary paid on 5 January","es":""},"category":"st"},{"id":"i2","text":{"fr":"","en":"Pension paid monthly from age 65","es":""},"category":"pe"},{"id":"i3","text":{"fr":"","en":"Loyalty award payable in four years, after fifteen years of service","es":""},"category":"ol"},{"id":"i4","text":{"fr":"","en":"Payment offered to employees of a closed workshop who agree to leave","es":""},"category":"tb"},{"id":"i5","text":{"fr":"","en":"Thirteenth-month pay paid in February for the year just ended","es":""},"category":"st"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000002","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TERMINATION_TRIGGER","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IAS19.000001","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-categories"},"references":["IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"What distinguishes a termination benefit from the other employee benefits?","es":""},"explanation":{"fr":"","en":"The trigger of a termination benefit is the end of the contract (the entity's decision or acceptance of a departure), not the service rendered (IAS 19).","es":""},"common_error":{"fr":"","en":"Believing that termination benefits are recognised by their amount or payment pattern.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is paid in a single instalment, on a date fixed in advance","es":""},"correct":false,"feedback":{"fr":"","en":"The payment pattern does not define the category: a termination benefit can be paid in instalments.","es":""}},{"id":"B","text":{"fr":"","en":"It is limited to the company's executives","es":""},"correct":false,"feedback":{"fr":"","en":"The category does not depend on the employee's rank but on the trigger.","es":""}},{"id":"C","text":{"fr":"","en":"It is triggered by the end of the contract, not by the service rendered","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Its amount exceeds one year of salary","es":""},"correct":false,"feedback":{"fr":"","en":"No amount threshold plays a part in the classification.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000003","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TWELVE_MONTH_TEST","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS19.000001","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-categories"},"references":["IAS 19 §11","IAS 19 §153"],"exercise":{"prompt":{"fr":"","en":"A benefit earned by the year's service but settled wholly eighteen months after the year end is not a short-term benefit.","es":""},"explanation":{"fr":"","en":"Settlement is not wholly within twelve months after the end of the period: the benefit falls in another category (IAS 19).","es":""},"common_error":{"fr":"","en":"Classifying the benefit as short-term because it is earned in the year: what matters is settlement within twelve months.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000004","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CATEGORY_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000001","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-categories"},"references":["IAS 19 §11","IAS 19 §153","IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"Spot the wrong statements about benefit categories.","es":""},"explanation":{"fr":"","en":"Two statements confuse the name or the payment date with the trigger and settlement (IAS 19).","es":""},"common_error":{"fr":"","en":"Linking the payment date to the end of employment to call every benefit \"post-employment\".","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"A pension paid after retirement is a post-employment benefit.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"A long-service award payable in three years is a short-term benefit because it is called a \"bonus\".","es":""},"erroneous":true,"correction":{"fr":"","en":"An award not settled within twelve months falls under other long-term benefits.","es":""}},{"id":"e3","text":{"fr":"","en":"Paid leave taken next year for the year's service is a short-term benefit.","es":""},"erroneous":false},{"id":"e4","text":{"fr":"","en":"A voluntary departure payment is a post-employment benefit because it is paid after the departure.","es":""},"erroneous":true,"correction":{"fr":"","en":"A payment triggered by the end of the contract is a termination benefit, whatever the payment date.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000005","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"TECHNOLOGY","tested_point":"SCOPE_IFRS2","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS19.000001","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-scope"},"references":["IAS 19 §2"],"exercise":{"prompt":{"fr":"","en":"According to IAS 19, share options of the employer granted to an employee fall under IAS 19.","es":""},"explanation":{"fr":"","en":"Share-based payments fall under IFRS 2, not IAS 19 (IAS 19).","es":""},"common_error":{"fr":"","en":"Putting share options under IAS 19 because they reward an employee: share-based payments fall under IFRS 2.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS19.000006","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SCOPE_IAS26","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000001","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-scope"},"references":["IAS 19 §2"],"exercise":{"prompt":{"fr":"","en":"A pension fund publishes its own annual report on its assets and commitments. Which standard deals with that report (IAS 19)?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): information produced by the plan itself falls under IAS 26; IAS 19 deals with the employer's accounting.","es":""},"common_error":{"fr":"","en":"Confusing the employer's accounting with the plan's financial report.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 19, since it deals with every report on retirement","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 19 deals with the employer's accounting, not with the report produced by the fund.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 2, since the fund holds shares of the employer","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 2 deals with share-based payments, not with plan reporting.","es":""}},{"id":"C","text":{"fr":"","en":"IAS 1, which sets the presentation of financial reports","es":""},"correct":false,"feedback":{"fr":"","en":"A specific standard exists for retirement plans: the fund's report does not follow the employer's presentation.","es":""}},{"id":"D","text":{"fr":"","en":"IAS 26, which covers the financial information produced by plans","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000007","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.ACCRUAL_UNDISCOUNTED"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ST_NO_DISCOUNT","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-accrual"},"references":["IAS 19 §11"],"exercise":{"prompt":{"fr":"","en":"A short-term benefit due in three months is discounted to reflect the time value of money.","es":""},"explanation":{"fr":"","en":"Short-term benefits are recognised at the undiscounted amount (IAS 19).","es":""},"common_error":{"fr":"","en":"Applying the discounting logic of pension plans to very short-term benefits.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS19.000008","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.ACCRUAL_UNDISCOUNTED"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"ACCRUED_PAY_CALC","difficulty":"BEGINNER","estimated_time_s":100,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"numeric-accrual"},"references":["IAS 19 §11"],"exercise":{"prompt":{"fr":"","en":"Tervane's monthly payroll is €276,000 for 23 working days; the last 8 working days of December will be paid in January. Calculate the pay to accrue at 31 December.","es":""},"explanation":{"fr":"","en":"276,000 ÷ 23 = €12,000 per day; 12,000 × 8 = €96,000. Rule to remember: the expense arises with the service, at the undiscounted amount (IAS 19).","es":""},"common_error":{"fr":"","en":"Taking the whole month (€276,000) instead of the unpaid days only.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Monthly payroll","es":""},"value":"276000","unit":"EUR"},{"label":{"fr":"","en":"Working days in the month","es":""},"value":"23","unit":"days"},{"label":{"fr":"","en":"Days not yet paid","es":""},"value":"8","unit":"days"}],"steps":[{"id":"a1","label":{"fr":"","en":"Cost per working day","es":""},"answer":12000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Pay to accrue","es":""},"answer":96000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Cost per working day","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Monthly payroll","es":""},"value":276000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Working days in the month","es":""},"value":23,"unit":"days"}],"result":12000,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Pay to accrue","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost per working day","es":""},"value":12000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Days not yet paid","es":""},"value":8,"unit":"days"}],"result":96000,"unit":"EUR"}],"rationale":{"fr":"","en":"the expense arises with the service, at the undiscounted amount (IAS 19).","es":""},"references":["REF.IAS19.11"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000009","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.ACCRUAL_UNDISCOUNTED"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"ACCRUED_PAY_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"numeric-accrual"},"references":["IAS 19 §11"],"exercise":{"prompt":{"fr":"","en":"At 31 December, Tervane owes €96,000 of December pay, paid in January, and €43,200 of employer social charges (case data: 45% of gross, a cost to the employer). Record the closing entry.","es":""},"explanation":{"fr":"","en":"Debit staff costs €139,200; credit accrued pay €96,000; credit social security payable €43,200. Rule to remember: expense and liability at the undiscounted amount once the service is rendered (IAS 19).","es":""},"common_error":{"fr":"","en":"Debiting cash although no payment has occurred.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs","es":""}},{"id":"pay","text":{"fr":"","en":"Accrued pay","es":""}},{"id":"soc","text":{"fr":"","en":"Social security payable","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":139200,"given":["account","side"]},{"id":"l2","account":"pay","side":"CREDIT","amount":96000,"given":["side"]},{"id":"l3","account":"soc","side":"CREDIT","amount":43200,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000010","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.COMPENSATED_ABSENCES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"ABSENCE_TIMING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-absences"},"references":["IAS 19 §13"],"exercise":{"prompt":{"fr":"","en":"The employees of Tolmare SA can carry unused paid leave over to the next year. At the reporting date, 12 carried-over days are expected to be taken. What is the treatment?","es":""},"explanation":{"fr":"","en":"An accumulating absence creates an obligation as services are rendered, even without immediate payment (IAS 19).","es":""},"common_error":{"fr":"","en":"Waiting for the leave to be actually taken to recognise the expense.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability and an expense at the reporting date for the cost of carried-over days","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No entry: the expense will be recognised next year when the leave is taken","es":""},"correct":false,"feedback":{"fr":"","en":"For an accumulating absence the entitlement is earned by past service; waiting for the absence would defer the expense wrongly.","es":""}},{"id":"C","text":{"fr":"","en":"A liability discounted over the carry-over period, since the days will be taken within a year","es":""},"correct":false,"feedback":{"fr":"","en":"Short-term benefits are not discounted.","es":""}},{"id":"D","text":{"fr":"","en":"A disclosure in the notes only, with no liability","es":""},"correct":false,"feedback":{"fr":"","en":"An obligation exists at the reporting date: it is recognised, not merely mentioned.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000011","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.COMPENSATED_ABSENCES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"ABSENCE_ACCRUAL_CALC","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"numeric-absences"},"references":["IAS 19 §13"],"exercise":{"prompt":{"fr":"","en":"Tervane: 24 workshop employees each carry 4 days (expected cost €120 per day) and 15 office employees each carry 3 days (expected cost €180 per day). Calculate the closing liability for accumulating absences.","es":""},"explanation":{"fr":"","en":"Workshop 24 × 4 × 120 = €11,520; office 15 × 3 × 180 = €8,100; total €19,620. Rule to remember: the liability for accumulating absences is the expected cost of the carried-over days (IAS 19).","es":""},"common_error":{"fr":"","en":"Applying a single daily cost to both groups.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Workshop: number of employees","es":""},"value":"24","unit":"employees"},{"label":{"fr":"","en":"Workshop: days carried forward per employee","es":""},"value":"4","unit":"days"},{"label":{"fr":"","en":"Workshop: expected cost per day","es":""},"value":"120","unit":"EUR"},{"label":{"fr":"","en":"Office: number of employees","es":""},"value":"15","unit":"employees"},{"label":{"fr":"","en":"Office: days carried forward per employee","es":""},"value":"3","unit":"days"},{"label":{"fr":"","en":"Office: expected cost per day","es":""},"value":"180","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Workshop liability","es":""},"answer":11520,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Office liability","es":""},"answer":8100,"tolerance":0,"unit":"EUR"},{"id":"a4","label":{"fr":"","en":"Closing liability","es":""},"answer":19620,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Workshop liability","es":""},"expression":"a * b * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Workshop: number of employees","es":""},"value":24,"unit":"employees"},{"symbol":"b","meaning":{"fr":"","en":"Workshop: days carried forward per employee","es":""},"value":4,"unit":"days"},{"symbol":"c","meaning":{"fr":"","en":"Workshop: expected cost per day","es":""},"value":120,"unit":"EUR"}],"result":11520,"unit":"EUR"},{"step":"a3","meaning":{"fr":"","en":"Office liability","es":""},"expression":"a * b * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Office: number of employees","es":""},"value":15,"unit":"employees"},{"symbol":"b","meaning":{"fr":"","en":"Office: days carried forward per employee","es":""},"value":3,"unit":"days"},{"symbol":"c","meaning":{"fr":"","en":"Office: expected cost per day","es":""},"value":180,"unit":"EUR"}],"result":8100,"unit":"EUR"}],"rationale":{"fr":"","en":"the liability for accumulating absences is the expected cost of the carried-over days (IAS 19).","es":""},"references":["REF.IAS19.13"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000012","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.COMPENSATED_ABSENCES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"ABSENCE_MOVEMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"numeric-absences"},"references":["IAS 19 §13"],"exercise":{"prompt":{"fr":"","en":"Tervane's liability for carried-over paid leave is €19,620 at the reporting date and €5,000 at the opening date. Record the entry for the year.","es":""},"explanation":{"fr":"","en":"Only the movement is an expense: 19,620 − 5,000 = €14,620; debit staff costs, credit accrued paid leave. Rule to remember: the liability follows earned entitlements, the year's expense is its movement (IAS 19).","es":""},"common_error":{"fr":"","en":"Debiting €19,620 to expense without taking the opening liability into account.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs","es":""}},{"id":"liab","text":{"fr":"","en":"Accrued paid leave","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":14620,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":14620,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000013","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.COMPENSATED_ABSENCES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ABSENCE_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IAS19.000002","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-absences"},"references":["IAS 19 §13"],"exercise":{"prompt":{"fr":"","en":"Classify each paid absence as accumulating or non-accumulating.","es":""},"explanation":{"fr":"","en":"An entitlement that carries over and grows with service is accumulating; one that exists only on the day of absence is non-accumulating (IAS 19).","es":""},"common_error":{"fr":"","en":"Treating every paid absence as accumulating.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ac","text":{"fr":"","en":"Accumulating","es":""}},{"id":"na","text":{"fr":"","en":"Non-accumulating","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Annual paid leave the employee may carry over to the next year","es":""},"category":"ac"},{"id":"i2","text":{"fr":"","en":"Maternity leave, which does not carry over","es":""},"category":"na"},{"id":"i3","text":{"fr":"","en":"Unused compensatory rest days, carried forward to the next year","es":""},"category":"ac"},{"id":"i4","text":{"fr":"","en":"Sick leave paid only for the days actually off sick","es":""},"category":"na"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000014","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"BONUS_CONSTRUCTIVE_OBLIGATION","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000003","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"rule"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"Sorlen SA has paid, every year for nine years, a bonus under a formula communicated to all employees, with no contract. At the end of December management admits it cannot drop it without a labour crisis. What must be done at the reporting date?","es":""},"explanation":{"fr":"","en":"Past practice with no realistic alternative creates a constructive obligation: liability and expense at the reporting date (IAS 19).","es":""},"common_error":{"fr":"","en":"Requiring a contract or a vote before recognising.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise the expense on payment, in March","es":""},"correct":false,"feedback":{"fr":"","en":"The expense follows the service rendered during the year, not the payment date.","es":""}},{"id":"B","text":{"fr":"","en":"Mention the bonus in the notes, as it is not required by contract","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a contract does not prevent a constructive obligation; a liability is recognised.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise a liability and an expense for the bonus","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Recognise nothing until the meeting has voted the bonus","es":""},"correct":false,"feedback":{"fr":"","en":"A constructive obligation exists before the formal vote when practice leaves no realistic alternative.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000015","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"CLASSIFICATION","context":"GENERIC","tested_point":"BONUS_FACTS_CLASSIFY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS19.000003","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"judgment"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"For each case fact, say whether it leads to a constructive obligation to pay a bonus at the reporting date (professional judgement, each fact read with the rest of the situation described).","es":""},"explanation":{"fr":"","en":"History, communication and the absence of a realistic alternative point to an obligation; a future or never-exercised gift creates none (IAS 19).","es":""},"common_error":{"fr":"","en":"Concluding from a single indicator without reading all the facts.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ob","text":{"fr":"","en":"Constructive obligation","es":""}},{"id":"no","text":{"fr":"","en":"No obligation at the reporting date","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Bonus paid seven years running under the same formula, presented to employees at every hiring","es":""},"category":"ob"},{"id":"i2","text":{"fr":"","en":"First bonus ever considered, proposed by management the following February as an exceptional thank-you","es":""},"category":"no"},{"id":"i3","text":{"fr":"","en":"Contract stating the bonus is discretionary; it has never been paid in ten years","es":""},"category":"no"},{"id":"i4","text":{"fr":"","en":"Formula written and communicated in January of the year; management has already set individual amounts before the reporting date","es":""},"category":"ob"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000016","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"BONUS_FORMULA_PERCENTAGE_OF","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000003","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"numeric"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"Under a Selvane plan the formula is 2% of profit before bonus (€4,150,000). Departures before payment are estimated at 10% of the bonus. Calculate the bonus to recognise.","es":""},"explanation":{"fr":"","en":"4,150,000 × 2% = €83,000; 83,000 × 90% = €74,700. Rule to remember: the bonus is recognised at the expected amount, per the formula and the estimate of departures (IAS 19).","es":""},"common_error":{"fr":"","en":"Subtracting 10 percentage points from the formula (2% − 10%).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Profit before bonus","es":""},"value":"4150000","unit":"EUR"},{"label":{"fr":"","en":"Formula rate","es":""},"value":"2","unit":"%"},{"label":{"fr":"","en":"Estimated departures","es":""},"value":"10","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Bonus before departures","es":""},"answer":83000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Bonus to recognise","es":""},"answer":74700,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Bonus before departures","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit before bonus","es":""},"value":4150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Under a Selvane plan the formula is 2% of profit before bonus","es":""},"value":2,"unit":"PERCENT"}],"result":83000,"unit":"EUR"}],"rationale":{"fr":"","en":"the bonus is recognised at the expected amount, per the formula and the estimate of departures (IAS 19).","es":""},"references":["REF.IAS19.19"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000017","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"RETAIL","tested_point":"BONUS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000003","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"numeric"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"Selvane has a constructive obligation to pay a bonus of €74,700 in March. Record the entry at 31 December.","es":""},"explanation":{"fr":"","en":"Debit staff costs €74,700; credit bonus payable €74,700: the expense belongs to the year in which service is rendered, not the payment year (IAS 19).","es":""},"common_error":{"fr":"","en":"Recording the bonus in March against equity.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs","es":""}},{"id":"bon","text":{"fr":"","en":"Bonus payable","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"res","text":{"fr":"","en":"Equity","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":74700,"given":["account","side"]},{"id":"l2","account":"bon","side":"CREDIT","amount":74700,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000018","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"RULE_KNOWLEDGE","format":"ERROR_SPOT","context":"GENERIC","tested_point":"BONUS_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000003","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"rule"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"Spot the wrong statements about accounting for bonuses.","es":""},"explanation":{"fr":"","en":"Two statements overlook the reliable-estimate condition and the no-discounting rule (IAS 19).","es":""},"common_error":{"fr":"","en":"Forgetting that the reliability of the estimate is a condition separate from the obligation.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"The cost of a bonus is recognised when the entity has a legal or constructive obligation and a reliably estimable amount.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"A bonus whose amount will be set after the financial statements are authorised for issue is always recognised at the reporting date.","es":""},"erroneous":true,"correction":{"fr":"","en":"Without a formula, an amount set before authorisation or established past practice, the estimate is not reliable.","es":""}},{"id":"e3","text":{"fr":"","en":"The expected bonus is discounted at the reporting date because it is paid the following spring.","es":""},"erroneous":true,"correction":{"fr":"","en":"A short-term benefit is not discounted.","es":""}},{"id":"e4","text":{"fr":"","en":"Past practice can create a constructive obligation without any contract providing for the bonus.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000019","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_VS_DB_CLASSIFICATION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"DCDB_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS19.000004","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-classification"},"references":["IAS 19 §26"],"exercise":{"prompt":{"fr":"","en":"Classify each Pellor SA plan (case facts, IAS 19).","es":""},"explanation":{"fr":"","en":"The investment risk is borne by the employee in i1 and i4; the employer commits to an outcome in i2 and i3 (IAS 19).","es":""},"common_error":{"fr":"","en":"Classifying by the existence of a fund or insurer rather than by the commitment.","es":""},"format":"CLASSIFICATION","categories":[{"id":"dc","text":{"fr":"","en":"Defined contribution","es":""}},{"id":"db","text":{"fr":"","en":"Defined benefit","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The employer pays 6% of salary to an insurer and has no other commitment","es":""},"category":"dc"},{"id":"i2","text":{"fr":"","en":"The employer promises a pension equal to 40% of final salary","es":""},"category":"db"},{"id":"i3","text":{"fr":"","en":"The employer contractually guarantees that the final capital will not be less than the contributions paid","es":""},"category":"db"},{"id":"i4","text":{"fr":"","en":"Employer and employee contributions are paid to a fund; the employee receives the balance of the account","es":""},"category":"dc"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000020","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_VS_DB_CLASSIFICATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"DCDB_CONSTRUCTIVE","difficulty":"ADVANCED","estimated_time_s":140,"lesson_id":"LS.IAS19.000004","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-classification"},"references":["IAS 19 §32"],"exercise":{"prompt":{"fr":"","en":"The contract of Pellor's plan C is titled \"defined contribution\". But for six years Pellor has topped up the employees' account each year to guarantee a 3% return and has always announced it. Which classification applies?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): classification follows the plan's actual terms, including a constructive obligation beyond the formal terms; here the entity has in fact committed to the return.","es":""},"common_error":{"fr":"","en":"Sticking to the contract's title.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Defined benefit: the commitment to guarantee the return is constructive","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Defined contribution, because a voluntary top-up is not an obligation","es":""},"correct":false,"feedback":{"fr":"","en":"A repeated, announced top-up with no realistic way out becomes a constructive obligation.","es":""}},{"id":"C","text":{"fr":"","en":"Defined contribution, because the contract says so and contributions are fixed","es":""},"correct":false,"feedback":{"fr":"","en":"Classification follows actual terms, including constructive obligations, not the title.","es":""}},{"id":"D","text":{"fr":"","en":"The plan can only be classified once a shortfall appears","es":""},"correct":false,"feedback":{"fr":"","en":"Classification depends on the existing commitment, not on an observed shortfall.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000021","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DC_EXPENSE_RULE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS19.000004","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-dc"},"references":["IAS 19 §26"],"exercise":{"prompt":{"fr":"","en":"In a defined contribution plan, the year's expense is the contribution due for service rendered during the period.","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): the expense is the period's contribution; no obligation has to be measured.","es":""},"common_error":{"fr":"","en":"Measuring an actuarial obligation for a defined contribution plan: the expense is the contribution due for the period.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000022","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_ACCOUNTING"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DC_CONTRIBUTION_PERCENTAGE_OF","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000004","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"numeric-dc"},"references":["IAS 19 §26"],"exercise":{"prompt":{"fr":"","en":"Bessane's plan A provides a contribution of 5% of pensionable salaries of €2,340,000. Bessane paid €90,000 during the year. Calculate the expense and the contribution still payable.","es":""},"explanation":{"fr":"","en":"5% × 2,340,000 = €117,000 expense; 117,000 − 90,000 = €27,000 payable.","es":""},"common_error":{"fr":"","en":"Taking €90,000 (the cash outflow) as the expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Pensionable salaries","es":""},"value":"2340000","unit":"EUR"},{"label":{"fr":"","en":"Contribution rate","es":""},"value":"5","unit":"%"},{"label":{"fr":"","en":"Already paid","es":""},"value":"90000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Expense for the year","es":""},"answer":117000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Contribution payable","es":""},"answer":27000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Contribution payable","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expense for the year","es":""},"value":117000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Already paid","es":""},"value":90000,"unit":"EUR"}],"result":27000,"unit":"EUR"}],"references":["REF.IAS19.26"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IAS19.000023","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_ACCOUNTING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"DC_CONTRIBUTION_ENTRY_PAYABLE","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000004","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"numeric-dc"},"references":["IAS 19 §26"],"exercise":{"prompt":{"fr":"","en":"Bessane owes €117,000 of contributions for the year and has paid €90,000. Record the year's entry.","es":""},"explanation":{"fr":"","en":"Debit staff costs €117,000; credit cash €90,000; credit contribution payable €27,000.","es":""},"common_error":{"fr":"","en":"Debiting the expense for the amount paid only.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"pay","text":{"fr":"","en":"Contribution payable","es":""}},{"id":"pre","text":{"fr":"","en":"Prepaid expense","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":117000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":90000,"given":["side"]},{"id":"l3","account":"pay","side":"CREDIT","amount":27000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000024","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_ACCOUNTING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"DC_CONTRIBUTION_ENTRY_PREPAID","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000004","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"numeric-dc"},"references":["IAS 19 §26"],"exercise":{"prompt":{"fr":"","en":"Pellor owes €111,000 of contributions for the year and has paid €118,000. Pedagogical assumption: the €7,000 advance will be set against next year's contributions. Record the year's entry.","es":""},"explanation":{"fr":"","en":"Expense for the year €111,000; advance €7,000 as prepaid expense; cash paid €118,000. Total debits (€118,000) equal total credits.","es":""},"common_error":{"fr":"","en":"Expensing the whole payment (€118,000).","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"pay","text":{"fr":"","en":"Contribution payable","es":""}},{"id":"pre","text":{"fr":"","en":"Prepaid expense","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":111000,"given":["account","side"]},{"id":"l2","account":"pre","side":"DEBIT","amount":7000,"given":["side"]},{"id":"l3","account":"cash","side":"CREDIT","amount":118000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000025","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.MULTI_EMPLOYER_PLANS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"MULTI_EMPLOYER_SHARE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000005","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"rule-multi"},"references":["IAS 19 §32"],"exercise":{"prompt":{"fr":"","en":"Under IAS 19, how does an entity account for a defined benefit multi-employer plan for which it receives sufficient information on its share?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): the proportionate share applies when information is sufficient.","es":""},"common_error":{"fr":"","en":"Believing every multi-employer plan is treated as defined contribution.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It waits for the plan to be wound up before recognising anything","es":""},"correct":false,"feedback":{"fr":"","en":"Obligations exist during the life of the plan and are recognised now.","es":""}},{"id":"B","text":{"fr":"","en":"It records only the period's contributions, as for a defined contribution plan","es":""},"correct":false,"feedback":{"fr":"","en":"That simplified treatment applies only where information is insufficient.","es":""}},{"id":"C","text":{"fr":"","en":"It accounts for its proportionate share of the obligation, assets and cost","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It recognises the plan's whole obligation, net of all employers' assets","es":""},"correct":false,"feedback":{"fr":"","en":"An entity accounts for its own share only, not that of other employers.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000026","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.MULTI_EMPLOYER_PLANS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"CONSTRUCTION","tested_point":"MULTI_EMPLOYER_CASE","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IAS19.000005","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"example"},"references":["IAS 19 §32"],"exercise":{"prompt":{"fr":"","en":"Norvick SA takes part in a defined benefit industry plan covering thirty employers. The plan publishes overall totals, allocates neither assets nor obligations, and Norvick has no data on its share. Norvick owes only the contributions set by the plan rules, with no commitment to make up a deficit. Which treatment applies (IAS 19)?","es":""},"explanation":{"fr":"","en":"Insufficient information for the share: treatment as a defined contribution plan (IAS 19).","es":""},"common_error":{"fr":"","en":"Estimating a share pro rata to contributions for lack of data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No recognition, since Norvick cannot measure its share","es":""},"correct":false,"feedback":{"fr":"","en":"Contributions due for the period are recognised as an expense.","es":""}},{"id":"B","text":{"fr":"","en":"Treatment as a defined contribution plan: expense equal to the period's contributions","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Liability equal to the plan's overall deficit divided by the number of employers","es":""},"correct":false,"feedback":{"fr":"","en":"Dividing by the number of employers does not measure Norvick's real share.","es":""}},{"id":"D","text":{"fr":"","en":"Proportionate share computed pro rata to Norvick's contributions out of the total","es":""},"correct":false,"feedback":{"fr":"","en":"A share needs reliable information on the share; a pro rata of contributions does not provide it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000027","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.STATE_PLANS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"STATE_PLAN_TERMS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS19.000005","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"rule-state"},"references":["IAS 19 §43"],"exercise":{"prompt":{"fr":"","en":"A retirement plan established by law escapes the terms-based classification, because the state alone bears responsibility for it.","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): a state plan is also classified by its terms; the entity's obligation is read from those terms.","es":""},"common_error":{"fr":"","en":"Not classifying a state plan: it too is classified by its terms, which set the entity's obligation.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000028","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.INSURED_BENEFITS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"INSURED_GUARANTEE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000005","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"rule-insured"},"references":["IAS 19 §46"],"exercise":{"prompt":{"fr":"","en":"Valcor SA pays fixed premiums to an insurer that pays its senior staff pensions. Valcor has committed in writing to pay the benefits itself if the insurer does not. What can be said about the classification (IAS 19)?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): an employer keeping the obligation to pay the benefits, including if the insurer fails, has a defined benefit plan.","es":""},"common_error":{"fr":"","en":"Seeing the insurer as a full transfer of risk.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Classification depends on the insurer's credit rating","es":""},"correct":false,"feedback":{"fr":"","en":"The insurer's rating does not replace the analysis of the employer's commitment.","es":""}},{"id":"B","text":{"fr":"","en":"The plan can be classified only after the insurer's first default","es":""},"correct":false,"feedback":{"fr":"","en":"The commitment exists from the outset; no default is needed to classify.","es":""}},{"id":"C","text":{"fr":"","en":"The plan is defined contribution, because premiums are fixed and an insurer pays the pensions","es":""},"correct":false,"feedback":{"fr":"","en":"Valcor's written commitment to step in for the insurer is the decisive point.","es":""}},{"id":"D","text":{"fr":"","en":"The plan is defined benefit, because Valcor keeps the obligation to pay the benefits","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000029","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.MULTI_EMPLOYER_PLANS","IAS19.POST_EMPLOYMENT.STATE_PLANS","IAS19.POST_EMPLOYMENT.INSURED_BENEFITS"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"POST_EMPLOYMENT_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000005","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"example"},"references":["IAS 19 §32","IAS 19 §43","IAS 19 §46"],"exercise":{"prompt":{"fr":"","en":"Match each Elmire SA situation (case facts) with the corresponding treatment (IAS 19).","es":""},"explanation":{"fr":"","en":"Sufficient information gives the share; an obligation limited to contributions gives the simplified treatment; the employer's guarantee leaves a defined benefit plan (IAS 19).","es":""},"common_error":{"fr":"","en":"Linking the state scheme to no recognition at all.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Defined benefit industry fund with an annual statement of the entity's share","es":""}},{"id":"l2","text":{"fr":"","en":"State scheme, legal contribution with no commitment to top up","es":""}},{"id":"l3","text":{"fr":"","en":"Fixed premiums paid to an insurer that pays the benefits; the employer guarantees a top-up if it fails","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Proportionate share of obligation, assets and cost","es":""}},{"id":"r2","text":{"fr":"","en":"Treated as a defined contribution plan","es":""}},{"id":"r3","text":{"fr":"","en":"Defined benefit plan of the employer alone","es":""}},{"id":"r4","text":{"fr":"","en":"No recognition before settlement","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000031","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.NET_LIABILITY_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"NET_AMOUNT_THREE_PLANS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000006","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"numeric-net"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"Fargane runs three plans. For each, calculate the obligation less the fair value of assets (a negative result is a surplus). A: obligation €2,100,000, assets €1,850,000; B: obligation €1,400,000, assets €1,520,000; C: obligation €800,000, assets €800,000.","es":""},"explanation":{"fr":"","en":"A: 2,100,000 − 1,850,000 = €250,000 (deficit); B: 1,400,000 − 1,520,000 = −€120,000 (surplus); C: 0 (balanced). Rule to remember: deficit (surplus) = obligation − fair value of assets (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Reversing the subtraction and reading a deficit where there is a surplus.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Plan A: obligation","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Plan A: assets","es":""},"value":"1850000","unit":"EUR"},{"label":{"fr":"","en":"Plan B: obligation","es":""},"value":"1400000","unit":"EUR"},{"label":{"fr":"","en":"Plan B: assets","es":""},"value":"1520000","unit":"EUR"},{"label":{"fr":"","en":"Plan C: obligation","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Plan C: assets","es":""},"value":"800000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Plan A","es":""},"answer":250000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Plan B","es":""},"answer":-120000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Plan C","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Plan A","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Plan A: obligation","es":""},"value":2100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Plan A: assets","es":""},"value":1850000,"unit":"EUR"}],"result":250000,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Plan B","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Plan B: obligation","es":""},"value":1400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Plan B: assets","es":""},"value":1520000,"unit":"EUR"}],"result":-120000,"unit":"EUR"}],"rationale":{"fr":"","en":"deficit (surplus) = obligation − fair value of assets (IAS 19, para. 8).","es":""},"references":["REF.IAS19.8"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000032","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PROJECTED_UNIT_CREDIT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PUC_PRINCIPLE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000006","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-puc"},"references":["IAS 19 §67"],"exercise":{"prompt":{"fr":"","en":"Which statement correctly describes the principle of the projected unit credit method?","es":""},"explanation":{"fr":"","en":"Projected unit credit measures separately one benefit unit per period of service, projected then discounted (IAS 19).","es":""},"common_error":{"fr":"","en":"Confusing the obligation with contributions already paid.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The obligation is the final undiscounted benefit for all employees","es":""},"correct":false,"feedback":{"fr":"","en":"Benefits are discounted, and only the share attributed to service rendered counts.","es":""}},{"id":"B","text":{"fr":"","en":"The obligation equals the contributions paid into the plan since inception","es":""},"correct":false,"feedback":{"fr":"","en":"Contributions paid do not measure the value of the promise made to employees.","es":""}},{"id":"C","text":{"fr":"","en":"One unit of benefit per period of service, measured separately and then discounted","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The obligation equals the fair value of the plan's assets","es":""},"correct":false,"feedback":{"fr":"","en":"Assets fund the obligation; they do not define it.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000033","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PROJECTED_UNIT_CREDIT"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"PUC_STEPS_ORDER","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IAS19.000006","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-puc"},"references":["IAS 19 §67"],"exercise":{"prompt":{"fr":"","en":"Put in order the three steps for measuring a benefit under projected unit credit.","es":""},"explanation":{"fr":"","en":"The benefit is first projected, then attributed to periods of service, then the attributed share is discounted (IAS 19).","es":""},"common_error":{"fr":"","en":"Discounting before attributing.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Estimate the benefit at the settlement date using the plan formula and projected salaries","es":""}},{"id":"s2","text":{"fr":"","en":"Attribute a share of the benefit to periods of service rendered","es":""}},{"id":"s3","text":{"fr":"","en":"Discount the attributed share to the measurement date","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000034","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PROJECTED_UNIT_CREDIT","IAS19.DEFINED_BENEFIT.ATTRIBUTION_TO_SERVICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"PUC_ATTRIBUTED_PV","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS19.000006","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"numeric-puc"},"references":["IAS 19 §67","IAS 19 §70"],"exercise":{"prompt":{"fr":"","en":"A Mislane employee has rendered 4 of 12 total years of service; they retire in 8 years with a projected lump sum of €18,000 (equal formula each year, straight-line attribution: pedagogical assumption). Discount rate: 6% (case data). Calculate the annual unit, the attributed benefit and its present value (rounded to the euro).","es":""},"explanation":{"fr":"","en":"18,000 ÷ 12 = €1,500; 1,500 × 4 = €6,000; 6,000 ÷ 1.06^8 = €3,764 (rounded). Rule to remember: the share attributed to service already rendered is discounted, not the whole benefit (IAS 19).","es":""},"common_error":{"fr":"","en":"Discounting the €18,000 instead of the €6,000 attributed.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Projected lump sum","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Years rendered","es":""},"value":"4","unit":"years"},{"label":{"fr":"","en":"Total years","es":""},"value":"12","unit":"years"},{"label":{"fr":"","en":"Years to retirement","es":""},"value":"8","unit":"years"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"6","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Unit per year of service","es":""},"answer":1500,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Attributed benefit","es":""},"answer":6000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Present value","es":""},"answer":3764,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Unit per year of service","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Projected lump sum","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total years","es":""},"value":12,"unit":"years"}],"result":1500,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Attributed benefit","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Unit per year of service","es":""},"value":1500,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years rendered","es":""},"value":4,"unit":"years"}],"result":6000,"unit":"EUR"}],"rationale":{"fr":"","en":"the share attributed to service already rendered is discounted, not the whole benefit (IAS 19).","es":""},"references":["REF.IAS19.67","REF.IAS19.70"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000035","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ATTRIBUTION_TO_SERVICE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ATTRIBUTION_FORMULA","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IAS19.000006","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-attribution"},"references":["IAS 19 §70"],"exercise":{"prompt":{"fr":"","en":"On what basis is the benefit attributed to periods of service?","es":""},"explanation":{"fr":"","en":"The benefit is attributed to periods of service following the plan's formula (IAS 19, para. 70).","es":""},"common_error":{"fr":"","en":"Reducing attribution to a mere division by the number of years.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The plan's benefit formula","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An equal split across career years, without looking at the formula","es":""},"correct":false,"feedback":{"fr":"","en":"An equal split is only a special case, when the formula gives an equal entitlement each year.","es":""}},{"id":"C","text":{"fr":"","en":"The dates on which the employer pays contributions","es":""},"correct":false,"feedback":{"fr":"","en":"The timing of contributions concerns funding, not the earning of entitlements.","es":""}},{"id":"D","text":{"fr":"","en":"The entity's free choice, to smooth its expense","es":""},"correct":false,"feedback":{"fr":"","en":"The entity does not choose freely: it follows the plan's formula.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000036","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ATTRIBUTION_TO_SERVICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"ATTRIBUTION_SPLIT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000006","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"numeric-puc"},"references":["IAS 19 §70"],"exercise":{"prompt":{"fr":"","en":"Mislane's plan pays €21,000 after 14 years of service, with an equal entitlement each year (case data; straight-line attribution: pedagogical assumption). For an employee who has rendered 5 years, calculate the share attributed to years rendered and the share still to be attributed to future years.","es":""},"explanation":{"fr":"","en":"21,000 × 5/14 = €7,500; 21,000 − 7,500 = €13,500. Rule to remember: attribution follows the plan's formula; here, an equal entitlement per year (IAS 19, para. 70).","es":""},"common_error":{"fr":"","en":"Attributing the whole lump sum to the six years rendered.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total benefit","es":""},"value":"21000","unit":"EUR"},{"label":{"fr":"","en":"Years rendered","es":""},"value":"5","unit":"years"},{"label":{"fr":"","en":"Total years","es":""},"value":"14","unit":"years"}],"steps":[{"id":"a1","label":{"fr":"","en":"Share attributed to years rendered","es":""},"answer":7500,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Share still to attribute","es":""},"answer":13500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Share attributed to years rendered","es":""},"expression":"a * b / c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total benefit","es":""},"value":21000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Years rendered","es":""},"value":5,"unit":"years"},{"symbol":"c","meaning":{"fr":"","en":"Total years","es":""},"value":14,"unit":"years"}],"result":7500,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Share still to attribute","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total benefit","es":""},"value":21000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share attributed to years rendered","es":""},"value":7500,"unit":"EUR"}],"result":13500,"unit":"EUR"}],"rationale":{"fr":"","en":"attribution follows the plan's formula; here, an equal entitlement per year (IAS 19, para. 70).","es":""},"references":["REF.IAS19.70"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000037","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ACTUARIAL_ASSUMPTIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ASSUMPTIONS_FAMILY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"understand"},"references":["IAS 19 §77"],"exercise":{"prompt":{"fr":"","en":"Classify each Ulmet SA plan assumption as demographic or financial.","es":""},"explanation":{"fr":"","en":"Demographic assumptions describe the behaviour of the population (retirement, disability, mortality, turnover); financial assumptions concern amounts and rates (IAS 19).","es":""},"common_error":{"fr":"","en":"Putting the retirement age among financial assumptions.","es":""},"format":"CLASSIFICATION","categories":[{"id":"dm","text":{"fr":"","en":"Demographic","es":""}},{"id":"fn","text":{"fr":"","en":"Financial","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Average retirement age","es":""},"category":"dm"},{"id":"i2","text":{"fr":"","en":"Discount rate","es":""},"category":"fn"},{"id":"i3","text":{"fr":"","en":"Annual disability rate","es":""},"category":"dm"},{"id":"i4","text":{"fr":"","en":"Future salary increases","es":""},"category":"fn"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000038","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ACTUARIAL_ASSUMPTIONS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"ASSUMPTIONS_CONSISTENCY","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assumptions"},"references":["IAS 19 §77"],"exercise":{"prompt":{"fr":"","en":"Which set of plan assumptions is inconsistent (IAS 19)?","es":""},"explanation":{"fr":"","en":"A nominal rate (inflation included) does not combine with salary growth excluding inflation: assumptions must be compatible with one another (IAS 19).","es":""},"common_error":{"fr":"","en":"Mixing nominal and real assumptions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recent mortality table suited to the covered population, with turnover observed over three years","es":""},"correct":false,"feedback":{"fr":"","en":"These demographic assumptions rest on observed data and do not contradict one another.","es":""}},{"id":"B","text":{"fr":"","en":"Retirement age of 63, consistent with the company's departure policy and the plan rules","es":""},"correct":false,"feedback":{"fr":"","en":"An age in line with policy and plan rules is consistent.","es":""}},{"id":"C","text":{"fr":"","en":"Nominal discount rate of 4% with nominal salary growth of 3%, 2% inflation included in both","es":""},"correct":false,"feedback":{"fr":"","en":"Both assumptions include the same inflation: they are compatible.","es":""}},{"id":"D","text":{"fr":"","en":"Nominal rate of 4% with salary growth of 1% excluding inflation","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000039","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DISCOUNT_RATE_REFERENCE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-discount"},"references":["IAS 19 §83"],"exercise":{"prompt":{"fr":"","en":"By reference to what is the discount rate for post-employment obligations determined?","es":""},"explanation":{"fr":"","en":"The rate is determined by reference to market yields, at the end of the period, on high-quality corporate bonds (IAS 19, para. 83).","es":""},"common_error":{"fr":"","en":"Using the expected return on assets as the discount rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To market yields on high-quality bonds","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To the expected return on the pension fund's investments","es":""},"correct":false,"feedback":{"fr":"","en":"The fund's investment return does not set the obligation's discount rate.","es":""}},{"id":"C","text":{"fr":"","en":"To the entity's bank borrowing rate","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's own borrowing cost is not the reference: it is a market yield on high-quality bonds.","es":""}},{"id":"D","text":{"fr":"","en":"To a rate freely set by the board each year","es":""},"correct":false,"feedback":{"fr":"","en":"The standard describes a market reference, not a chosen rate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000040","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.DISCOUNT_RATE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISCOUNT_RATE_DATE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-discount"},"references":["IAS 19 §83"],"exercise":{"prompt":{"fr":"","en":"The closing obligation is measured using the discount rate determined at the end of the reporting period.","es":""},"explanation":{"fr":"","en":"The closing obligation is measured using market yields at the end of the reporting period (IAS 19, para. 83).","es":""},"common_error":{"fr":"","en":"Measuring the closing obligation at the opening rate: market yields at the end of the period are used.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000041","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.DISCOUNT_RATE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"DISCOUNT_RATE_SENSITIVITY","difficulty":"ADVANCED","estimated_time_s":160,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"numeric-discount"},"references":["IAS 19 §83"],"exercise":{"prompt":{"fr":"","en":"Haldren must pay €80,000 to an employee in 8 years (case data). Calculate the present value at 6%, at 5%, then the effect of a 1-point fall in the rate (rounded to the cent).","es":""},"explanation":{"fr":"","en":"80,000 ÷ 1.06^8 = €50,192.99; 80,000 ÷ 1.05^8 = €54,147.15; difference €3,954.16. Rule to remember: a fall in the rate increases the present value of the obligation.","es":""},"common_error":{"fr":"","en":"Concluding that the present value falls when the rate falls.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount payable","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Maturity","es":""},"value":"8","unit":"years"},{"label":{"fr":"","en":"First rate","es":""},"value":"6","unit":"%"},{"label":{"fr":"","en":"Second rate","es":""},"value":"5","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Present value at 6%","es":""},"answer":50192.99,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Present value at 5%","es":""},"answer":54147.15,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Effect of the rate fall","es":""},"answer":3954.16,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Present value at 6%","es":""},"expression":"a / (1 + b)^8","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable","es":""},"value":80000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Calculate the present value at 6%","es":""},"value":6,"unit":"PERCENT"}],"result":50192.99,"unit":"EUR"}],"rationale":{"fr":"","en":"a fall in the rate increases the present value of the obligation.","es":""},"references":["REF.IAS19.83"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000042","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PLAN_ASSETS"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"PLAN_ASSETS_ELIGIBLE","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assets"},"references":["IAS 19 §115","IAS 19 §116"],"exercise":{"prompt":{"fr":"","en":"Which Ulmet SA assets are plan assets (case facts, IAS 19)? Several answers.","es":""},"explanation":{"fr":"","en":"Assets of a separate, protected fund and qualifying policies from an unrelated insurer are plan assets (IAS 19).","es":""},"common_error":{"fr":"","en":"Counting any asset the employer says it dedicates to pensions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Entity cash mentally set aside for future pensions","es":""},"correct":false,"feedback":{"fr":"","en":"Management's intention does not create a plan asset; the asset remains the employer's.","es":""}},{"id":"B","text":{"fr":"","en":"Policy issued by an independent insurer, qualifying, that pays specified benefits","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Factory machines pledged as security to the fund","es":""},"correct":false,"feedback":{"fr":"","en":"An employer asset pledged as security remains an employer asset.","es":""}},{"id":"D","text":{"fr":"","en":"Policy issued by an Ulmet subsidiary covering its executives","es":""},"correct":false,"feedback":{"fr":"","en":"An insurer related to the entity does not make the policy qualifying.","es":""}},{"id":"E","text":{"fr":"","en":"Securities held by a separate fund that serves only retirees and is out of creditors' reach","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000043","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PLAN_ASSETS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"PLAN_ASSETS_MATCHING_POLICY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assets"},"references":["IAS 19 §115"],"exercise":{"prompt":{"fr":"","en":"Ulmet holds a qualifying policy that pays exactly the amount and timing of benefits owed to 30 retirees; the present value of those obligations is €800,000. What fair value applies to the policy (IAS 19)?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): a qualifying policy that exactly matches the benefits has a fair value deemed equal to the present value of the obligations covered.","es":""},"common_error":{"fr":"","en":"Using premium cost rather than fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The policy's surrender value, whatever its fit with the benefits","es":""},"correct":false,"feedback":{"fr":"","en":"For a policy that exactly matches the benefits, fair value is deemed equal to the present value of the obligations.","es":""}},{"id":"B","text":{"fr":"","en":"The premiums paid to the insurer, accumulated at historical cost","es":""},"correct":false,"feedback":{"fr":"","en":"Plan assets are measured at fair value, not cost.","es":""}},{"id":"C","text":{"fr":"","en":"€800,000, deemed equal to the present value of the obligations covered","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Zero, because an insurance policy is not a plan asset","es":""},"correct":false,"feedback":{"fr":"","en":"A qualifying policy is a plan asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000044","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PLAN_ASSETS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PLAN_ASSETS_MEASUREMENT","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS19.000007","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assets"},"references":["IAS 19 §115"],"exercise":{"prompt":{"fr":"","en":"Plan assets are measured at fair value.","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): plan assets are measured at fair value, not at historical cost.","es":""},"common_error":{"fr":"","en":"Measuring plan assets at historical cost: they are measured at fair value.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000045","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"CEILING_LOWER_OF","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"numeric-ceiling"},"references":["IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"Ormand's plan shows a surplus of €560,000; the asset ceiling (case data) is €480,000. Calculate the net asset recognised and the effect of the ceiling.","es":""},"explanation":{"fr":"","en":"The lower of €560,000 and €480,000 is €480,000; the ceiling effect is 560,000 − 480,000 = €80,000. Rule to remember: net asset = lower of surplus and ceiling (IAS 19, para. 64).","es":""},"common_error":{"fr":"","en":"Recognising the full surplus without regard to the ceiling.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Surplus","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"Asset ceiling","es":""},"value":"480000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Net asset recognised","es":""},"answer":480000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Effect of the ceiling","es":""},"answer":80000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Effect of the ceiling","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Surplus","es":""},"value":560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Asset ceiling","es":""},"value":480000,"unit":"EUR"}],"result":80000,"unit":"EUR"}],"rationale":{"fr":"","en":"net asset = lower of surplus and ceiling (IAS 19, para. 64).","es":""},"references":["REF.IAS19.64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000046","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"CEILING_CHANGE_OCI","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"numeric-ceiling"},"references":["IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"The following year, Ormand's surplus is €640,000 and the ceiling €500,000. The opening ceiling effect was €80,000. Calculate the net asset, the closing effect and the movement to recognise in other comprehensive income (excluding net interest, ignored by case convention).","es":""},"explanation":{"fr":"","en":"Net asset = min(640,000; 500,000) = €500,000; closing effect = 640,000 − 500,000 = €140,000; movement = 140,000 − 80,000 = €60,000 in other comprehensive income. Case convention: net interest is ignored.","es":""},"common_error":{"fr":"","en":"Recognising €140,000 when €80,000 had already been recognised.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Closing surplus","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Closing ceiling","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Opening effect","es":""},"value":"80000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Closing net asset","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Closing effect","es":""},"answer":140000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Movement in other comprehensive income","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Closing effect","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing surplus","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Closing ceiling","es":""},"value":500000,"unit":"EUR"}],"result":140000,"unit":"EUR"},{"step":"a3","meaning":{"fr":"","en":"Movement in other comprehensive income","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing effect","es":""},"value":140000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening effect","es":""},"value":80000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"references":["REF.IAS19.64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000047","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"CEILING_ENTRY_OCI","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"numeric-ceiling"},"references":["IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"Ormand recognises for the first time a ceiling effect of €80,000 (surplus €560,000, net asset €480,000). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit other comprehensive income €80,000; credit net asset €80,000. The ceiling effect is a remeasurement: it does not go through profit or loss.","es":""},"common_error":{"fr":"","en":"Taking the ceiling effect to profit or loss as an expense.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"oci","text":{"fr":"","en":"Other comprehensive income (remeasurements)","es":""}},{"id":"pl","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"asset","text":{"fr":"","en":"Net defined benefit asset","es":""}}],"lines":[{"id":"l1","account":"oci","side":"DEBIT","amount":80000,"given":["account","side"]},{"id":"l2","account":"asset","side":"CREDIT","amount":80000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000048","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"AVAILABILITY_RIGHT","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-availability"},"references":["IAS 19"],"exercise":{"prompt":{"fr":"","en":"Pavrel's management says it does not intend to recover the plan surplus, but the plan rules give it an unconditional right to a refund at the end of the plan's life. What follows about the availability of the benefit?","es":""},"explanation":{"fr":"","en":"Under IFRIC 14, a benefit is available if the entity has an unconditional right to realise it during the life of the plan or on settlement; its intentions are ignored.","es":""},"common_error":{"fr":"","en":"Basing availability on management's intention.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The benefit becomes available after the actual refund","es":""},"correct":false,"feedback":{"fr":"","en":"A right to a future refund is enough; the refund need not have occurred.","es":""}},{"id":"B","text":{"fr":"","en":"Available: the unconditional right is enough, intention is ignored","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The benefit is unavailable, since management does not plan to recover it","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's intentions are ignored: only the right counts.","es":""}},{"id":"D","text":{"fr":"","en":"Availability depends on the shareholders' vote each year","es":""},"correct":false,"feedback":{"fr":"","en":"Availability is a legal fact of the plan, not an annual decision of the meeting.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000049","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"CEILING_OCI_NOT_PL","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-ceiling"},"references":["IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"The effect of the asset ceiling is recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"It is part of remeasurements and is recognised in other comprehensive income (IAS 19).","es":""},"common_error":{"fr":"","en":"Taking the asset ceiling effect to profit or loss: it is part of remeasurements, in OCI.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000050","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.MINIMUM_FUNDING_IFRIC14"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"MIN_FUNDING_FLOOR","difficulty":"ADVANCED","estimated_time_s":180,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"numeric-minimum-funding"},"references":["IAS 19"],"exercise":{"prompt":{"fr":"","en":"Case data (thousand euros, no discounting: pedagogical assumption). Future service cost per year: 600, 600, 600. Minimum contributions for future service: 540, 700, 580. Calculate the difference for each year (cost − contribution), then the benefit available as a reduction in future contributions.","es":""},"explanation":{"fr":"","en":"Year 1: 600 − 540 = 60; year 2: 600 − 700 = −100; year 3: 600 − 580 = 20. The differences offset each other: 60 − 100 + 20 = −20, brought to 0 by the floor applied to the total. Rule to remember: the benefit available is the offset total of the differences, which cannot be below zero (IFRIC 14).","es":""},"common_error":{"fr":"","en":"Bringing year 2 to zero before adding (60 + 0 + 20 = 80), instead of offsetting the differences and flooring the total.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Future service cost, each year","es":""},"value":"600","unit":"k EUR"},{"label":{"fr":"","en":"Minimum contribution, year 1","es":""},"value":"540","unit":"k EUR"},{"label":{"fr":"","en":"Minimum contribution, year 2","es":""},"value":"700","unit":"k EUR"},{"label":{"fr":"","en":"Minimum contribution, year 3","es":""},"value":"580","unit":"k EUR"}],"steps":[{"id":"y1","label":{"fr":"","en":"Difference, year 1","es":""},"answer":60,"tolerance":0,"unit":"k EUR"},{"id":"y2","label":{"fr":"","en":"Difference, year 2","es":""},"answer":-100,"tolerance":0,"unit":"k EUR"},{"id":"y3","label":{"fr":"","en":"Difference, year 3","es":""},"answer":20,"tolerance":0,"unit":"k EUR"},{"id":"t","label":{"fr":"","en":"Benefit available (after floor on the total)","es":""},"answer":0,"tolerance":0,"unit":"k EUR"}],"formula":{"lines":[{"step":"y1","meaning":{"fr":"","en":"Difference, year 1","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Future service cost, each year","es":""},"value":600,"unit":"k EUR"},{"symbol":"b","meaning":{"fr":"","en":"Minimum contribution, year 1","es":""},"value":540,"unit":"k EUR"}],"result":60,"unit":"k EUR"},{"step":"y2","meaning":{"fr":"","en":"Difference, year 2","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Future service cost, each year","es":""},"value":600,"unit":"k EUR"},{"symbol":"b","meaning":{"fr":"","en":"Minimum contribution, year 2","es":""},"value":700,"unit":"k EUR"}],"result":-100,"unit":"k EUR"},{"step":"y3","meaning":{"fr":"","en":"Difference, year 3","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Future service cost, each year","es":""},"value":600,"unit":"k EUR"},{"symbol":"b","meaning":{"fr":"","en":"Minimum contribution, year 3","es":""},"value":580,"unit":"k EUR"}],"result":20,"unit":"k EUR"}],"rationale":{"fr":"","en":"the benefit available is the offset total of the differences, which cannot be below zero (IFRIC 14).","es":""},"references":["REF.IAS19.IFRIC14.MINFUNDING"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000051","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.MINIMUM_FUNDING_IFRIC14"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"MIN_FUNDING_LIABILITY","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-minimum-funding"},"references":["IAS 19"],"exercise":{"prompt":{"fr":"","en":"Valcor must pay contributions to make up an existing deficit in its plan. Once paid, they will be neither refundable nor able to reduce its future contributions (case data). What can this minimum funding requirement create (IFRIC 14)?","es":""},"explanation":{"fr":"","en":"Under IFRIC 14, a minimum funding requirement may create a liability if the contributions required will not be available to the entity once paid.","es":""},"common_error":{"fr":"","en":"Treating contributions that cover a deficit as a recoverable asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing, since minimum funding contributions do not fall under IAS 19","es":""},"correct":false,"feedback":{"fr":"","en":"IFRIC 14 deals precisely with these requirements in connection with IAS 19.","es":""}},{"id":"B","text":{"fr":"","en":"A reduction of the asset ceiling by the size of the deficit","es":""},"correct":false,"feedback":{"fr":"","en":"Contributions covering an existing deficit do not affect future contributions for future service; the reasoning concerns a liability.","es":""}},{"id":"C","text":{"fr":"","en":"An additional liability, as these contributions will be lost","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An additional asset, since paying more funds the plan better","es":""},"correct":false,"feedback":{"fr":"","en":"If the amounts paid cannot come back to the entity, they create no asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000052","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.EMPLOYEE_CONTRIBUTIONS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"EMPLOYEE_CONTRIBUTION_BRANCH","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-employee-contributions"},"references":["IAS 19 §93"],"exercise":{"prompt":{"fr":"","en":"Employees in a defined benefit plan each pay 3% of salary, whatever their number of years of service. What treatment is possible for these contributions?","es":""},"explanation":{"fr":"","en":"Contributions independent of years of service: option to recognise them as a reduction of the period's service cost (IAS 19, para. 93).","es":""},"common_error":{"fr":"","en":"Ignoring the distinction between contributions dependent on and independent of years of service.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deduct them from the service cost of the period in which the service is rendered (option)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Attribute them to periods of service using the gross benefit method, as they depend on years of service","es":""},"correct":false,"feedback":{"fr":"","en":"That branch applies to contributions that depend on years of service; here they do not.","es":""}},{"id":"C","text":{"fr":"","en":"Recognise them directly in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"Neither branch places them in other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"Recognise them as income in profit or loss, since they are received from staff","es":""},"correct":false,"feedback":{"fr":"","en":"They are not income: they reduce the cost of benefits or are attributed to periods of service.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000053","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.EMPLOYEE_CONTRIBUTIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"EMPLOYEE_CONTRIBUTION_NET_SERVICE_COST","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-employee-contributions"},"references":["IAS 19 §93"],"exercise":{"prompt":{"fr":"","en":"Gross service cost of a plan: €640,000. Members pay 2% of salaries of €5,500,000, independent of years of service; the entity takes the option of deducting them from service cost. Calculate the contributions and the net service cost.","es":""},"explanation":{"fr":"","en":"5,500,000 × 2% = €110,000; 640,000 − 110,000 = €530,000. Rule to remember: the option applies to contributions independent of years of service (IAS 19, para. 93).","es":""},"common_error":{"fr":"","en":"Adding the members' contributions to the service cost.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Gross service cost","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Salaries","es":""},"value":"5500000","unit":"EUR"},{"label":{"fr":"","en":"Members' contribution rate","es":""},"value":"2","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Member contributions","es":""},"answer":110000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Net service cost","es":""},"answer":530000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Net service cost","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross service cost","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Member contributions","es":""},"value":110000,"unit":"EUR"}],"result":530000,"unit":"EUR"}],"rationale":{"fr":"","en":"the option applies to contributions independent of years of service (IAS 19, para. 93).","es":""},"references":["REF.IAS19.93"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000054","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.AGENDA_DECISION_ATTRIBUTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"AGENDA_DECISION_SCOPE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000008","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-agenda-decision"},"references":["IAS 19","IAS 19 §70"],"exercise":{"prompt":{"fr":"","en":"A plan pays a lump sum if the employee is employed at retirement age. A colleague cites the 2021 agenda decision as \"the attribution rule to apply\". How to answer?","es":""},"explanation":{"fr":"","en":"An agenda decision is an explanation of the standard, read with the attribution rules, not a new requirement (IAS 19, para. 70).","es":""},"common_error":{"fr":"","en":"Presenting an agenda decision as a rule of the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The decision replaced the standard's attribution rules for all plans","es":""},"correct":false,"feedback":{"fr":"","en":"An agenda decision sheds light on the standard without replacing it.","es":""}},{"id":"B","text":{"fr":"","en":"The decision requires attributing every benefit to the last year of service","es":""},"correct":false,"feedback":{"fr":"","en":"An agenda decision explains how existing principles apply; it does not add a new rule attributing the benefit to the last year.","es":""}},{"id":"C","text":{"fr":"","en":"The decision concerns only defined contribution plans","es":""},"correct":false,"feedback":{"fr":"","en":"It concerns the attribution of the benefit of a defined benefit plan.","es":""}},{"id":"D","text":{"fr":"","en":"The decision clarifies the attribution rules, with no new requirement","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000055","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.COMPONENTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"COMPONENTS_WHERE","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-components"},"references":["IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"Classify each item of Jarmet's plan cost by where it is recognised.","es":""},"explanation":{"fr":"","en":"Service cost and net interest: profit or loss. Actuarial gains and losses and return on assets excluding interest: remeasurements, in other comprehensive income (IAS 19).","es":""},"common_error":{"fr":"","en":"Placing every change in the obligation in profit or loss.","es":""},"format":"CLASSIFICATION","categories":[{"id":"pl","text":{"fr":"","en":"Profit or loss","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Present value of entitlements earned during the year","es":""},"category":"pl"},{"id":"i2","text":{"fr":"","en":"Net interest on the opening net liability","es":""},"category":"pl"},{"id":"i3","text":{"fr":"","en":"Loss due to a fall in the discount rate at year end","es":""},"category":"oci"},{"id":"i4","text":{"fr":"","en":"Return on assets above the interest income included in net interest","es":""},"category":"oci"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000056","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.COMPONENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"COMPONENTS_PL_OCI_SUM","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"numeric-components"},"references":["IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"For the year, Quillon has a service cost of €310,000, net interest of €38,000 and a remeasurement loss of €52,000. Calculate the expense in profit or loss and the amount in other comprehensive income (loss = negative).","es":""},"explanation":{"fr":"","en":"Profit or loss: 310,000 + 38,000 = €348,000 expense; other comprehensive income: −€52,000 (remeasurement loss, not recycled).","es":""},"common_error":{"fr":"","en":"Adding the remeasurement loss to the profit or loss expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Service cost","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Net interest","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Remeasurement loss","es":""},"value":"52000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Expense in profit or loss","es":""},"answer":348000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Amount in other comprehensive income","es":""},"answer":-52000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Expense in profit or loss","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Service cost","es":""},"value":310000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net interest","es":""},"value":38000,"unit":"EUR"}],"result":348000,"unit":"EUR"}],"references":["REF.IAS19.120"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000057","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.CURRENT_SERVICE_COST"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"SERVICE_COST_ASSUMPTIONS_DATE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-service-cost"},"references":["IAS 19 §122A"],"exercise":{"prompt":{"fr":"","en":"With which actuarial assumptions is the period's service cost determined, absent a plan event?","es":""},"explanation":{"fr":"","en":"Service cost is determined using assumptions set at the start of the annual period, except for a remeasurement after a plan event (IAS 19).","es":""},"common_error":{"fr":"","en":"Using the closing rate for the period's cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those at the end of the period, updated at the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"Closing assumptions serve to measure the closing obligation, not the period's service cost.","es":""}},{"id":"B","text":{"fr":"","en":"Those set at the start of the annual reporting period","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Last year's assumptions, with no update","es":""},"correct":false,"feedback":{"fr":"","en":"They are those set at the start of the current period, which may be updated from last year.","es":""}},{"id":"D","text":{"fr":"","en":"The average of start- and end-of-period assumptions","es":""},"correct":false,"feedback":{"fr":"","en":"No averaging is provided: start-of-period assumptions apply.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000058","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.CURRENT_SERVICE_COST"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"SERVICE_COST_PV","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-service-cost"},"references":["IAS 19 §122A"],"exercise":{"prompt":{"fr":"","en":"A Quillon employee earns during the year a benefit unit of €2,000, settled 5 years after the reporting date. Start-of-year rate: 4%. Calculate the service cost (case convention: present value at the reporting date, rounded to the cent).","es":""},"explanation":{"fr":"","en":"2,000 ÷ 1.04^5 = €1,643.85. Rule to remember: service cost is the present value of the year's benefit, with start-of-period assumptions (IAS 19).","es":""},"common_error":{"fr":"","en":"Taking €2,000 undiscounted.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Benefit unit","es":""},"value":"2000","unit":"EUR"},{"label":{"fr":"","en":"Years to settlement","es":""},"value":"5","unit":"years"},{"label":{"fr":"","en":"Start-of-year rate","es":""},"value":"4","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Service cost","es":""},"answer":1643.85,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Service cost","es":""},"expression":"a / (1 + b)^5","variables":[{"symbol":"a","meaning":{"fr":"","en":"Benefit unit","es":""},"value":2000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Start-of-year rate: 4%","es":""},"value":4,"unit":"PERCENT"}],"result":1643.85,"unit":"EUR"}],"rationale":{"fr":"","en":"service cost is the present value of the year's benefit, with start-of-period assumptions (IAS 19).","es":""},"references":["REF.IAS19.122A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000059","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"NET_INTEREST_PERCENTAGE_OF","difficulty":"INTERMEDIATE","estimated_time_s":130,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"numeric-net-interest"},"references":["IAS 19 §123"],"exercise":{"prompt":{"fr":"","en":"Quillon: opening obligation €5,400,000; opening fair value of plan assets €4,250,000; opening discount rate 6%; no flows during the year (case convention). Calculate interest on the obligation, interest income on assets and net interest.","es":""},"explanation":{"fr":"","en":"5,400,000 × 6% = €324,000; 4,250,000 × 6% = €255,000; 324,000 − 255,000 = €69,000, that is 1,150,000 × 6%. Rule to remember: assets carry the same rate as the obligation (IAS 19).","es":""},"common_error":{"fr":"","en":"Applying to assets an expected return different from the discount rate.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening obligation","es":""},"value":"5400000","unit":"EUR"},{"label":{"fr":"","en":"Opening assets","es":""},"value":"4250000","unit":"EUR"},{"label":{"fr":"","en":"Opening rate","es":""},"value":"6","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Interest on the obligation","es":""},"answer":324000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Interest income on assets","es":""},"answer":255000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Net interest","es":""},"answer":69000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a3","meaning":{"fr":"","en":"Net interest","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest on the obligation","es":""},"value":324000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income on assets","es":""},"value":255000,"unit":"EUR"}],"result":69000,"unit":"EUR"}],"rationale":{"fr":"","en":"assets carry the same rate as the obligation (IAS 19).","es":""},"references":["REF.IAS19.123"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000060","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST"],"dimension":"CALCULATION","format":"CALCULATION","context":"GENERIC","tested_point":"NET_INTEREST_NET_ASSET","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"numeric-net-interest"},"references":["IAS 19 §123"],"exercise":{"prompt":{"fr":"","en":"Pellor's plan has a net asset (ceiling aside): opening assets €1,400,000, opening obligation €1,200,000, opening rate 4%, no flows during the year (case convention). Calculate net interest; income is positive.","es":""},"explanation":{"fr":"","en":"1,400,000 − 1,200,000 = €200,000 net asset; 200,000 × 4% = €8,000 net interest income.","es":""},"common_error":{"fr":"","en":"Recognising an interest expense although the plan has a net asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening assets","es":""},"value":"1400000","unit":"EUR"},{"label":{"fr":"","en":"Opening obligation","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"4","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Opening net asset","es":""},"answer":200000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Net interest income","es":""},"answer":8000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Opening net asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening assets","es":""},"value":1400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening obligation","es":""},"value":1200000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"references":["REF.IAS19.123"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000061","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST","IAS19.DB_COST.CURRENT_SERVICE_COST"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"SERVICE_AND_INTEREST_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"numeric-net-interest"},"references":["IAS 19 §123","IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"Quillon has a service cost of €295,000 and net interest of €69,000 for the year (flows at year end: case convention). Record the entry for the two profit or loss components.","es":""},"explanation":{"fr":"","en":"Debit staff costs €295,000; debit net interest expense €69,000; credit net liability €364,000. Neither service cost nor net interest goes through other comprehensive income.","es":""},"common_error":{"fr":"","en":"Taking net interest to other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs (service cost)","es":""}},{"id":"int","text":{"fr":"","en":"Net interest expense","es":""}},{"id":"nl","text":{"fr":"","en":"Net defined benefit liability","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":295000,"given":["account","side"]},{"id":"l2","account":"int","side":"DEBIT","amount":69000,"given":["account","side"]},{"id":"l3","account":"nl","side":"CREDIT","amount":364000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000062","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST"],"dimension":"RULE_KNOWLEDGE","format":"ERROR_SPOT","context":"GENERIC","tested_point":"NET_INTEREST_ERRORS","difficulty":"INTERMEDIATE","estimated_time_s":110,"lesson_id":"LS.IAS19.000009","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-net-interest"},"references":["IAS 19 §123","IAS 19 §83"],"exercise":{"prompt":{"fr":"","en":"Spot the wrong statements about net interest.","es":""},"explanation":{"fr":"","en":"Two statements overlook the single rate for assets and the interest calculation (IAS 19).","es":""},"common_error":{"fr":"","en":"Confusing the actual or expected return on assets with interest income.","es":""},"format":"ERROR_SPOT","statements":[{"id":"e1","text":{"fr":"","en":"Net interest is calculated using the discount rate determined at the start of the annual period.","es":""},"erroneous":false},{"id":"e2","text":{"fr":"","en":"Interest income on plan assets uses the expected return on the fund's investments.","es":""},"erroneous":true,"correction":{"fr":"","en":"Interest income on plan assets uses the same discount rate as the obligation.","es":""}},{"id":"e3","text":{"fr":"","en":"Net interest is recognised in profit or loss.","es":""},"erroneous":false},{"id":"e4","text":{"fr":"","en":"With an opening net liability of €1,000,000 and a 5% rate, net interest is €500,000 (no flows during the year).","es":""},"erroneous":true,"correction":{"fr":"","en":"Net interest is 1,000,000 × 5% = €50,000.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000063","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.REMEASUREMENTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"REMEASUREMENT_ELEMENTS","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-remeasurements"},"references":["IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"Classify each element of a plan's cost: is it a remeasurement element?","es":""},"explanation":{"fr":"","en":"Remeasurements are actuarial gains and losses, the return on assets excluding net interest and the change in the ceiling effect (excluding net interest); service cost and net interest are other components (IAS 19).","es":""},"common_error":{"fr":"","en":"Counting net interest among remeasurements.","es":""},"format":"CLASSIFICATION","categories":[{"id":"rm","text":{"fr":"","en":"Remeasurement element","es":""}},{"id":"no","text":{"fr":"","en":"Not a remeasurement","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Actuarial loss due to a fall in the discount rate at year end","es":""},"category":"rm"},{"id":"i2","text":{"fr":"","en":"Return on plan assets above the interest income included in net interest","es":""},"category":"rm"},{"id":"i3","text":{"fr":"","en":"Net interest on the opening net liability","es":""},"category":"no"},{"id":"i4","text":{"fr":"","en":"Cost of service rendered during the year","es":""},"category":"no"},{"id":"i5","text":{"fr":"","en":"Change in the effect of the asset ceiling, excluding amounts included in net interest","es":""},"category":"rm"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000064","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.REMEASUREMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"RETURN_EXCLUDING_INTEREST","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-assets"},"references":["IAS 19 §127","IAS 19 §123"],"exercise":{"prompt":{"fr":"","en":"Lugane's fund: opening fair value €2,000,000; contributions €150,000; benefits paid €120,000; closing fair value €2,310,000; interest income included in net interest €100,000. Calculate the actual return on assets and the return excluding net interest.","es":""},"explanation":{"fr":"","en":"Actual return = 2,310,000 − 2,000,000 − 150,000 + 120,000 = €280,000; excluding interest income: 280,000 − 100,000 = €180,000 remeasurement gain (other comprehensive income).","es":""},"common_error":{"fr":"","en":"Recognising the entire actual return in other comprehensive income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening fair value","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Contributions","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Benefits paid","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Closing fair value","es":""},"value":"2310000","unit":"EUR"},{"label":{"fr":"","en":"Interest income","es":""},"value":"100000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Actual return on assets","es":""},"answer":280000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Return excluding net interest (remeasurement)","es":""},"answer":180000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Actual return on assets","es":""},"expression":"a - b - c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing fair value","es":""},"value":2310000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Opening fair value","es":""},"value":2000000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Contributions","es":""},"value":150000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Benefits paid","es":""},"value":120000,"unit":"EUR"}],"result":280000,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Return excluding net interest (remeasurement)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Actual return on assets","es":""},"value":280000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income","es":""},"value":100000,"unit":"EUR"}],"result":180000,"unit":"EUR"}],"references":["REF.IAS19.127","REF.IAS19.123"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000065","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DBO_ROLL_FORWARD","difficulty":"ADVANCED","estimated_time_s":170,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-obligation"},"references":["IAS 19 §120","IAS 19 §123","IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"Dorvane: opening obligation €7,500,000; opening rate 5%; service cost €420,000; benefits paid €360,000 (at year end: case convention); closing obligation given by the actuary €8,050,000. Build the reconciliation: interest, calculated obligation and remeasurement (balancing item; loss = positive).","es":""},"explanation":{"fr":"","en":"Interest 7,500,000 × 5% = €375,000; calculated obligation 7,500,000 + 420,000 + 375,000 − 360,000 = €7,935,000; remeasurement 8,050,000 − 7,935,000 = €115,000 loss.","es":""},"common_error":{"fr":"","en":"Forgetting to deduct benefits paid from the calculated obligation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening obligation","es":""},"value":"7500000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"5","unit":"%"},{"label":{"fr":"","en":"Service cost","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Benefits paid","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Closing obligation given","es":""},"value":"8050000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Interest on the obligation","es":""},"answer":375000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Calculated obligation","es":""},"answer":7935000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Remeasurement (actuarial loss)","es":""},"answer":115000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Calculated obligation","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening obligation","es":""},"value":7500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Service cost","es":""},"value":420000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest on the obligation","es":""},"value":375000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Benefits paid","es":""},"value":360000,"unit":"EUR"}],"result":7935000,"unit":"EUR"},{"step":"a3","meaning":{"fr":"","en":"Remeasurement (actuarial loss)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing obligation given","es":""},"value":8050000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Calculated obligation","es":""},"value":7935000,"unit":"EUR"}],"result":115000,"unit":"EUR"}],"references":["REF.IAS19.120","REF.IAS19.123","REF.IAS19.127"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000066","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"PLAN_ASSETS_ROLL_FORWARD","difficulty":"ADVANCED","estimated_time_s":170,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-assets"},"references":["IAS 19 §127","IAS 19 §123"],"exercise":{"prompt":{"fr":"","en":"Dorvane: opening fair value of assets €6,200,000; opening rate 5%; contributions €400,000 and benefits €360,000 (at year end); closing fair value given €6,480,000. Calculate interest income, calculated fair value and the remeasurement (gain = positive).","es":""},"explanation":{"fr":"","en":"Interest income 6,200,000 × 5% = €310,000; calculated fair value 6,200,000 + 310,000 + 400,000 − 360,000 = €6,550,000; remeasurement 6,480,000 − 6,550,000 = −€70,000 (loss).","es":""},"common_error":{"fr":"","en":"Using the expected return instead of the obligation's rate for interest income.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening fair value","es":""},"value":"6200000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"5","unit":"%"},{"label":{"fr":"","en":"Contributions","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Benefits paid","es":""},"value":"360000","unit":"EUR"},{"label":{"fr":"","en":"Closing fair value given","es":""},"value":"6480000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Interest income","es":""},"answer":310000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Calculated fair value","es":""},"answer":6550000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Remeasurement (return excluding interest)","es":""},"answer":-70000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Calculated fair value","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening fair value","es":""},"value":6200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income","es":""},"value":310000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Contributions","es":""},"value":400000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Benefits paid","es":""},"value":360000,"unit":"EUR"}],"result":6550000,"unit":"EUR"},{"step":"a3","meaning":{"fr":"","en":"Remeasurement (return excluding interest)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing fair value given","es":""},"value":6480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Calculated fair value","es":""},"value":6550000,"unit":"EUR"}],"result":-70000,"unit":"EUR"}],"references":["REF.IAS19.127","REF.IAS19.123"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000067","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD","IAS19.DB_COST.REMEASUREMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"NET_LIABILITY_RECONCILIATION","difficulty":"ADVANCED","estimated_time_s":160,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-net-liability"},"references":["IAS 19 §120","IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"Dorvane: opening net liability €1,300,000; service cost €420,000; net interest €65,000; contributions €400,000; remeasurements: actuarial loss of €115,000 and loss of €70,000 on assets. Calculate total remeasurements and the closing net liability, then check against 8,050,000 − 6,480,000.","es":""},"explanation":{"fr":"","en":"Remeasurements: 115,000 + 70,000 = €185,000 loss; closing net liability: 1,300,000 + 420,000 + 65,000 − 400,000 + 185,000 = €1,570,000 = 8,050,000 − 6,480,000.","es":""},"common_error":{"fr":"","en":"Forgetting to deduct the employer's contributions from the net liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening net liability","es":""},"value":"1300000","unit":"EUR"},{"label":{"fr":"","en":"Service cost","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Net interest","es":""},"value":"65000","unit":"EUR"},{"label":{"fr":"","en":"Contributions","es":""},"value":"400000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Total remeasurements (loss)","es":""},"answer":185000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Closing net liability","es":""},"answer":1570000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Closing net liability","es":""},"expression":"a + b + c - d + e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening net liability","es":""},"value":1300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Service cost","es":""},"value":420000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Net interest","es":""},"value":65000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Contributions","es":""},"value":400000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Total remeasurements (loss)","es":""},"value":185000,"unit":"EUR"}],"result":1570000,"unit":"EUR"}],"references":["REF.IAS19.120","REF.IAS19.127"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000068","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.REMEASUREMENTS","IAS19.DB_COST.OCI_NO_RECYCLING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"REMEASUREMENT_LOSS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-net-liability"},"references":["IAS 19 §127","IAS 19 §122"],"exercise":{"prompt":{"fr":"","en":"Dorvane finds total remeasurements of €185,000 loss (€115,000 on the obligation, €70,000 on assets). Record the entry.","es":""},"explanation":{"fr":"","en":"Debit other comprehensive income €185,000; credit net liability €185,000: the remeasurement loss does not go through profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising the remeasurement loss as a staff cost.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"oci","text":{"fr":"","en":"Other comprehensive income (remeasurements)","es":""}},{"id":"pl","text":{"fr":"","en":"Staff costs","es":""}},{"id":"nl","text":{"fr":"","en":"Net defined benefit liability","es":""}}],"lines":[{"id":"l1","account":"oci","side":"DEBIT","amount":185000,"given":["account","side"]},{"id":"l2","account":"nl","side":"CREDIT","amount":185000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000069","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.REMEASUREMENTS","IAS19.DB_COST.OCI_NO_RECYCLING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FINANCE","tested_point":"REMEASUREMENT_GAIN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-net-liability"},"references":["IAS 19 §127","IAS 19 §122"],"exercise":{"prompt":{"fr":"","en":"Sorlen's plan assets earned more than the interest income: remeasurement gain of €90,000. Record the entry.","es":""},"explanation":{"fr":"","en":"Higher assets reduce the net liability: debit net liability €90,000; credit other comprehensive income €90,000. No income is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Recognising the excess return as finance income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"oci","text":{"fr":"","en":"Other comprehensive income (remeasurements)","es":""}},{"id":"nl","text":{"fr":"","en":"Net defined benefit liability","es":""}},{"id":"inc","text":{"fr":"","en":"Finance income","es":""}}],"lines":[{"id":"l1","account":"nl","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l2","account":"oci","side":"CREDIT","amount":90000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000070","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.OCI_NO_RECYCLING"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OCI_NO_RECYCLING_TF","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-no-recycling"},"references":["IAS 19 §122"],"exercise":{"prompt":{"fr":"","en":"A remeasurement loss recognised in other comprehensive income is reclassified to profit or loss when the plan is settled.","es":""},"explanation":{"fr":"","en":"Remeasurements are never reclassified to profit or loss of a later period (IAS 19).","es":""},"common_error":{"fr":"","en":"Applying to remeasurements the recycling known for other items of other comprehensive income.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000071","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.OCI_NO_RECYCLING"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"OCI_ONLY_EQUITY_TRANSFER","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-no-recycling"},"references":["IAS 19 §122"],"exercise":{"prompt":{"fr":"","en":"What is the only movement allowed on the accumulated remeasurements in equity of a defined benefit plan?","es":""},"explanation":{"fr":"","en":"The entity may transfer the amounts within equity but never reclassifies remeasurements to profit or loss (IAS 19).","es":""},"common_error":{"fr":"","en":"Believing amounts go through profit or loss at settlement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A reclassification to profit or loss, spread over the employees' remaining service lives","es":""},"correct":false,"feedback":{"fr":"","en":"No spreading through profit or loss is provided for remeasurements.","es":""}},{"id":"B","text":{"fr":"","en":"A reclassification to profit or loss on the date the plan is settled","es":""},"correct":false,"feedback":{"fr":"","en":"Remeasurements are never reclassified to profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"A reversal to income when the obligation decreases","es":""},"correct":false,"feedback":{"fr":"","en":"A later fall in the obligation is a new remeasurement, recognised in other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"A transfer to another line within equity","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000072","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"ROLL_FORWARD_ORDER","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-rollforward"},"references":["IAS 19 §120","IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"Put the steps of the obligation reconciliation in order.","es":""},"explanation":{"fr":"","en":"The calculated obligation is built first, then the remeasurement is determined as the balancing item (IAS 19).","es":""},"common_error":{"fr":"","en":"Determining the remeasurement before knowing the calculated obligation.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Start from the opening obligation","es":""}},{"id":"s2","text":{"fr":"","en":"Add service cost and interest on the obligation","es":""}},{"id":"s3","text":{"fr":"","en":"Deduct benefits paid to obtain the calculated obligation","es":""}},{"id":"s4","text":{"fr":"","en":"Compare with the closing balance given: the gap is the remeasurement","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000073","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD","IAS19.DB_COST.REMEASUREMENTS","IAS19.DB_COST.OCI_NO_RECYCLING"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"MANUFACTURING","tested_point":"ROLL_FORWARD_MINI_CASE","difficulty":"EXPERT","estimated_time_s":300,"lesson_id":"LS.IAS19.000010","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"numeric-net-liability"},"references":["IAS 19 §120","IAS 19 §122","IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"Answer the three questions on Norvick's plan.","es":""},"explanation":{"fr":"","en":"The obligation higher than calculated gives a €40,000 loss; assets higher than calculated give a €22,000 gain; net: €18,000 loss in other comprehensive income (IAS 19).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Norvick SA. Opening obligation €1,000,000; opening fair value of assets €800,000; opening rate 6%; service cost €70,000; benefits paid €50,000 and employer contributions €60,000 (at year end: case convention). Closing data: obligation €1,120,000; fair value of assets €880,000.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the actuarial loss on the obligation (balancing item).","es":""},"explanation":{"fr":"","en":"Calculated obligation: 1,000,000 + 70,000 (service cost) + 60,000 (interest) − 50,000 (benefits) = €1,080,000; actuarial loss: 1,120,000 − 1,080,000 = €40,000.","es":""},"common_error":{"fr":"","en":"Forgetting benefits paid or interest in the computed obligation: the actuarial loss is the gap between the closing obligation and the rebuilt one.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a1","label":{"fr":"","en":"Calculated obligation","es":""},"answer":1080000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Actuarial loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Actuarial loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing data: obligation €1,120,000","es":""},"value":1120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Calculated obligation","es":""},"value":1080000,"unit":"EUR"}],"result":40000,"unit":"EUR"}],"references":["REF.IAS19.120","REF.IAS19.122","REF.IAS19.127"]}},{"prompt":{"fr":"","en":"Calculate the remeasurement of the assets (balancing item; gain = positive).","es":""},"explanation":{"fr":"","en":"Interest income 800,000 × 6% = €48,000; calculated fair value: 800,000 + 48,000 + 60,000 − 50,000 = €858,000; remeasurement: 880,000 − 858,000 = €22,000 gain.","es":""},"common_error":{"fr":"","en":"Forgetting interest income or contributions: the remeasurement compares closing fair value with the rebuilt fair value.","es":""},"format":"CALCULATION","data":[],"steps":[{"id":"a1","label":{"fr":"","en":"Calculated fair value","es":""},"answer":858000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Remeasurement of assets","es":""},"answer":22000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION","formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Remeasurement of assets","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"fair value of assets €880,000","es":""},"value":880000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Calculated fair value","es":""},"value":858000,"unit":"EUR"}],"result":22000,"unit":"EUR"}],"references":["REF.IAS19.120","REF.IAS19.122","REF.IAS19.127"]}},{"prompt":{"fr":"","en":"What is the net effect of remeasurements in other comprehensive income?","es":""},"explanation":{"fr":"","en":"−40,000 + 22,000 = −€18,000: net loss of €18,000 in other comprehensive income, never reclassified to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of €62,000, that is 40,000 + 22,000","es":""},"correct":false,"feedback":{"fr":"","en":"The gain on assets reduces the net liability: it is deducted from the loss.","es":""}},{"id":"B","text":{"fr":"","en":"A net loss of €18,000","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A loss of €40,000, the gain on assets going to profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Both elements are remeasurements and offset in other comprehensive income.","es":""}},{"id":"D","text":{"fr":"","en":"A net gain of €18,000","es":""},"correct":false,"feedback":{"fr":"","en":"The loss on the obligation (€40,000) exceeds the gain on assets (€22,000).","es":""}}],"id":"p3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000074","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.REMEASUREMENT_BEFORE_PSC"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"PLAN_EVENT_STEPS","difficulty":"BEGINNER","estimated_time_s":80,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-order"},"references":["IAS 19 §99","IAS 19 §101A"],"exercise":{"prompt":{"fr":"","en":"Put the steps to follow on a plan amendment in order.","es":""},"explanation":{"fr":"","en":"Remeasurement precedes past service cost or the settlement result; the ceiling comes last (IAS 19, paras. 99 and 101A).","es":""},"common_error":{"fr":"","en":"Applying the ceiling before determining past service cost.","es":""},"format":"ORDERING","steps":[{"id":"s1","text":{"fr":"","en":"Remeasure the net liability with the current fair value of assets and current assumptions","es":""}},{"id":"s2","text":{"fr":"","en":"Determine the past service cost","es":""}},{"id":"s3","text":{"fr":"","en":"Take into account the effect of the asset ceiling","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000075","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.CURTAILMENT"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"WHY_REMEASURE_FIRST","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-order"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Why is the net liability remeasured before calculating the effect of a curtailment?","es":""},"explanation":{"fr":"","en":"The remeasurement isolates the effects of time and assumptions; the curtailment is then measured on up-to-date figures (IAS 19, para. 99).","es":""},"common_error":{"fr":"","en":"Mixing assumption differences with the effect of the curtailment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To isolate the effect of the curtailment from changes in assumptions","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To defer recognition of the curtailment to the following year","es":""},"correct":false,"feedback":{"fr":"","en":"The remeasurement defers nothing: the curtailment is recognised at the date of the event.","es":""}},{"id":"C","text":{"fr":"","en":"Because the standard forbids any estimate after a plan event","es":""},"correct":false,"feedback":{"fr":"","en":"On the contrary: estimates (assumptions and asset values) are updated at the date of the event.","es":""}},{"id":"D","text":{"fr":"","en":"To increase the year's profit","es":""},"correct":false,"feedback":{"fr":"","en":"The remeasurement goes to other comprehensive income; its purpose is not to change profit.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000076","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.REMEASUREMENT_BEFORE_PSC"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"REMEASUREMENT_BEFORE_AMENDMENT","difficulty":"ADVANCED","estimated_time_s":190,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"numeric-psc"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Hestine, 1 July: carrying obligation €6,280,000, remeasured to €6,395,000; expected fair value of assets €5,120,000, remeasured to €5,165,000. Calculate the loss on the obligation, the gain on assets, the net remeasurement in other comprehensive income (loss = positive) and the remeasured net liability.","es":""},"explanation":{"fr":"","en":"6,395,000 − 6,280,000 = €115,000 loss; 5,165,000 − 5,120,000 = €45,000 gain; net loss €70,000 in other comprehensive income; remeasured net liability 6,395,000 − 5,165,000 = €1,230,000.","es":""},"common_error":{"fr":"","en":"Adding the gain on assets to the loss instead of deducting it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying obligation","es":""},"value":"6280000","unit":"EUR"},{"label":{"fr":"","en":"Remeasured obligation","es":""},"value":"6395000","unit":"EUR"},{"label":{"fr":"","en":"Expected assets","es":""},"value":"5120000","unit":"EUR"},{"label":{"fr":"","en":"Remeasured assets","es":""},"value":"5165000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Loss on the obligation","es":""},"answer":115000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Gain on assets","es":""},"answer":45000,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Net remeasurement (loss)","es":""},"answer":70000,"tolerance":0,"unit":"EUR"},{"id":"a4","label":{"fr":"","en":"Remeasured net liability","es":""},"answer":1230000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Loss on the obligation","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured obligation","es":""},"value":6395000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying obligation","es":""},"value":6280000,"unit":"EUR"}],"result":115000,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Gain on assets","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured assets","es":""},"value":5165000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected assets","es":""},"value":5120000,"unit":"EUR"}],"result":45000,"unit":"EUR"},{"step":"a4","meaning":{"fr":"","en":"Remeasured net liability","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Remeasured obligation","es":""},"value":6395000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remeasured assets","es":""},"value":5165000,"unit":"EUR"}],"result":1230000,"unit":"EUR"}],"references":["REF.IAS19.99"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000077","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"PAST_SERVICE_COST_NET_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-psc"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Hestine's remeasured obligation before the amendment: €6,395,000; after the amendment (same date, same assumptions): €6,560,000. Calculate past service cost and the net liability after the amendment (assets: €5,165,000).","es":""},"explanation":{"fr":"","en":"6,560,000 − 6,395,000 = €165,000; net liability 6,560,000 − 5,165,000 = €1,395,000. The cost goes to profit or loss.","es":""},"common_error":{"fr":"","en":"Comparing the post-amendment obligation with the opening carrying obligation, not remeasured.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Obligation before the amendment","es":""},"value":"6395000","unit":"EUR"},{"label":{"fr":"","en":"Obligation after the amendment","es":""},"value":"6560000","unit":"EUR"},{"label":{"fr":"","en":"Assets","es":""},"value":"5165000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Past service cost","es":""},"answer":165000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Net liability after the amendment","es":""},"answer":1395000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Past service cost","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Obligation after the amendment","es":""},"value":6560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Obligation before the amendment","es":""},"value":6395000,"unit":"EUR"}],"result":165000,"unit":"EUR"},{"step":"a2","meaning":{"fr":"","en":"Net liability after the amendment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Obligation after the amendment","es":""},"value":6560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Assets","es":""},"value":5165000,"unit":"EUR"}],"result":1395000,"unit":"EUR"}],"references":["REF.IAS19.99"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000078","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"PAST_SERVICE_COST_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"numeric-psc"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Hestine has a past service cost of €165,000 after the prior remeasurement. Record the entry.","es":""},"explanation":{"fr":"","en":"Debit past service cost €165,000; credit net liability €165,000. It is not spread and does not go through other comprehensive income.","es":""},"common_error":{"fr":"","en":"Taking past service cost to other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"psc","text":{"fr":"","en":"Past service cost (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income","es":""}},{"id":"nl","text":{"fr":"","en":"Net defined benefit liability","es":""}}],"lines":[{"id":"l1","account":"psc","side":"DEBIT","amount":165000,"given":["account","side"]},{"id":"l2","account":"nl","side":"CREDIT","amount":165000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000079","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.SETTLEMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"SETTLEMENT_GAIN_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-curtailment-settlement"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Kardane settles with an insurer the pensions of a group of retirees: settled obligation, remeasured at the settlement date: €600,000; settlement price paid from plan assets: €640,000. Calculate the settlement gain or loss (loss = positive).","es":""},"explanation":{"fr":"","en":"Settlement price €640,000 − settled obligation €600,000 = €40,000 loss, in profit or loss (IAS 19).","es":""},"common_error":{"fr":"","en":"Reversing the sign and concluding a €40,000 gain.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Settled obligation remeasured","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Settlement price","es":""},"value":"640000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Settlement loss","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Settlement loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Settlement price","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Settled obligation remeasured","es":""},"value":600000,"unit":"EUR"}],"result":40000,"unit":"EUR"}],"rationale":{"fr":"","en":"Settlement price €640,000 − settled obligation €600,000 = €40,000 loss, in profit or loss (IAS 19).","es":""},"references":["REF.IAS19.99"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000080","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.SETTLEMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"FINANCE","tested_point":"SETTLEMENT_LOSS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"numeric-psc"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Kardane records a settlement loss of €40,000 (settled obligation €600,000; settlement price €640,000 paid from assets). Record the entry for the loss.","es":""},"explanation":{"fr":"","en":"The obligation falls by €600,000 and assets by €640,000: the net liability rises by €40,000. Debit settlement loss, credit net liability.","es":""},"common_error":{"fr":"","en":"Recognising the loss directly in other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loss","text":{"fr":"","en":"Settlement loss (profit or loss)","es":""}},{"id":"nl","text":{"fr":"","en":"Net defined benefit liability","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":40000,"given":["account","side"]},{"id":"l2","account":"nl","side":"CREDIT","amount":40000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000081","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.REMEASUREMENT_BEFORE_PSC"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"NET_INTEREST_REMAINING_PERIOD","difficulty":"ADVANCED","estimated_time_s":160,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"numeric-rest-of-period"},"references":["IAS 19 §123A","IAS 19 §122A"],"exercise":{"prompt":{"fr":"","en":"Hestine: after the 1 July amendment, the net liability is €1,395,000; the remeasurement discount rate is 5.4%; 5 months out of 12 remain; no cash flow is assumed until the reporting date (case convention). Calculate the effective rate for the remaining period, then net interest for the rest of the year.","es":""},"explanation":{"fr":"","en":"5.4% × 5/12 = 2.25%; 1,395,000 × 2.25% = €31,387.50. Rule to remember: after a remeasurement, net interest for the rest of the period is calculated on the remeasured net liability, using the remeasurement rate (IAS 19).","es":""},"common_error":{"fr":"","en":"Applying the annual 5.4% rate without reducing it to the remaining period.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Net liability after the event","es":""},"value":"1395000","unit":"EUR"},{"label":{"fr":"","en":"Remeasurement rate","es":""},"value":"5.4","unit":"%"},{"label":{"fr":"","en":"Months remaining","es":""},"value":"5","unit":"months"},{"label":{"fr":"","en":"Months in the year","es":""},"value":"12","unit":"months"}],"steps":[{"id":"a1","label":{"fr":"","en":"Effective rate for the remaining period (%)","es":""},"answer":2.25,"tolerance":0,"unit":"%"},{"id":"a2","label":{"fr":"","en":"Net interest for the rest of the year","es":""},"answer":31387.5,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Effective rate for the remaining period (%)","es":""},"expression":"(a * b / c) * 100","variables":[{"symbol":"a","meaning":{"fr":"","en":"the remeasurement discount rate is 5.4%","es":""},"value":5.4,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Months remaining","es":""},"value":5,"unit":"months"},{"symbol":"c","meaning":{"fr":"","en":"Months in the year","es":""},"value":12,"unit":"months"}],"result":2.25,"unit":"%"}],"rationale":{"fr":"","en":"after a remeasurement, net interest for the rest of the period is calculated on the remeasured net liability, using the remeasurement rate (IAS 19).","es":""},"references":["REF.IAS19.123A","REF.IAS19.122A"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000082","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.CURTAILMENT","IAS19.PLAN_CHANGES.SETTLEMENT","IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"PLAN_EVENT_IDENTIFY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-curtailment-settlement"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Characterise each Kardane SA fact (IAS 19).","es":""},"explanation":{"fr":"","en":"A formula improvement is an amendment, the exit of a large share of employees a curtailment, the discharge of the obligation for a price a settlement; a rate change is a mere remeasurement (IAS 19).","es":""},"common_error":{"fr":"","en":"Seeing a plan event in a mere change of assumption.","es":""},"format":"CLASSIFICATION","categories":[{"id":"am","text":{"fr":"","en":"Amendment","es":""}},{"id":"cu","text":{"fr":"","en":"Curtailment","es":""}},{"id":"se","text":{"fr":"","en":"Settlement","es":""}},{"id":"no","text":{"fr":"","en":"Not a plan event","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A new formula raises the entitlement per year of service from 1.5% to 1.8% of final salary, including past service","es":""},"category":"am"},{"id":"i2","text":{"fr":"","en":"Closing a factory removes 40% of covered employees from the plan","es":""},"category":"cu"},{"id":"i3","text":{"fr":"","en":"An insurer takes over, for a price, the obligation to pay the pensions of 200 retirees","es":""},"category":"se"},{"id":"i4","text":{"fr":"","en":"The discount rate falls by 0.3 points between two year ends","es":""},"category":"no"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000083","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.CURTAILMENT","IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"CURTAILMENT_GAIN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000011","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-curtailment-settlement"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"Closing a factory reduces Kardane's obligation by €90,000 (after prior remeasurement; IAS 19: treated as a negative past service cost). Record the entry.","es":""},"explanation":{"fr":"","en":"The obligation falls: debit net liability €90,000; credit curtailment gain (negative past service cost) €90,000 in profit or loss.","es":""},"common_error":{"fr":"","en":"Taking the curtailment gain to other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"nl","text":{"fr":"","en":"Net defined benefit liability","es":""}},{"id":"gain","text":{"fr":"","en":"Past service cost: curtailment gain (profit or loss)","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income","es":""}}],"lines":[{"id":"l1","account":"nl","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":90000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000084","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.OTHER_LONG_TERM"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"OLT_REMEASUREMENT_WHERE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-other-long-term"},"references":["IAS 19 §153"],"exercise":{"prompt":{"fr":"","en":"Where is an actuarial loss on long-service awards (another long-term benefit) recognised, under IAS 19?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): the net total of service cost, net interest and remeasurements of another long-term benefit is recognised in profit or loss.","es":""},"common_error":{"fr":"","en":"Applying to long-service awards the other-comprehensive-income treatment of pensions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income, recycled on payment","es":""},"correct":false,"feedback":{"fr":"","en":"No other comprehensive income treatment applies to these benefits.","es":""}},{"id":"B","text":{"fr":"","en":"In profit or loss, with service cost and net interest","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In other comprehensive income, with no recycling","es":""},"correct":false,"feedback":{"fr":"","en":"That is the treatment for post-employment defined benefit plans.","es":""}},{"id":"D","text":{"fr":"","en":"Directly in equity","es":""},"correct":false,"feedback":{"fr":"","en":"No direct charge to equity: the loss goes through profit or loss.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000085","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.OTHER_LONG_TERM"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"OLT_VS_DB_TF","difficulty":"BEGINNER","estimated_time_s":50,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-other-long-term"},"references":["IAS 19 §153"],"exercise":{"prompt":{"fr":"","en":"The main difference in accounting between a defined benefit plan and another long-term benefit concerns remeasurements.","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): service cost and net interest go to profit or loss in both cases; remeasurements go through profit or loss for other long-term benefits.","es":""},"common_error":{"fr":"","en":"Thinking service cost and interest are treated differently: only the recognition of remeasurements distinguishes the two categories.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000086","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.OTHER_LONG_TERM"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"OLT_ROLL_FORWARD","difficulty":"INTERMEDIATE","estimated_time_s":140,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"numeric-other-long-term"},"references":["IAS 19 §153"],"exercise":{"prompt":{"fr":"","en":"Lorvik: opening liability for long-service awards €105,000; opening rate 4%; service cost €15,000; actuarial loss €3,500; benefits paid €11,000 (at year end: case convention). Calculate interest, the profit or loss expense and the closing liability.","es":""},"explanation":{"fr":"","en":"Interest 105,000 × 4% = €4,200; expense 15,000 + 4,200 + 3,500 = €22,700; liability 105,000 + 22,700 − 11,000 = €116,700.","es":""},"common_error":{"fr":"","en":"Excluding the actuarial loss from the profit or loss expense.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening liability","es":""},"value":"105000","unit":"EUR"},{"label":{"fr":"","en":"Rate","es":""},"value":"4","unit":"%"},{"label":{"fr":"","en":"Service cost","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Actuarial loss","es":""},"value":"3500","unit":"EUR"},{"label":{"fr":"","en":"Benefits paid","es":""},"value":"11000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Interest","es":""},"answer":4200,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Expense in profit or loss","es":""},"answer":22700,"tolerance":0,"unit":"EUR"},{"id":"a3","label":{"fr":"","en":"Closing liability","es":""},"answer":116700,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Expense in profit or loss","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Service cost","es":""},"value":15000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest","es":""},"value":4200,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Actuarial loss","es":""},"value":3500,"unit":"EUR"}],"result":22700,"unit":"EUR"},{"step":"a3","meaning":{"fr":"","en":"Closing liability","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening liability","es":""},"value":105000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expense in profit or loss","es":""},"value":22700,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Benefits paid","es":""},"value":11000,"unit":"EUR"}],"result":116700,"unit":"EUR"}],"references":["REF.IAS19.153"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000087","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.OTHER_LONG_TERM"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"OLT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"numeric-other-long-term"},"references":["IAS 19 §153"],"exercise":{"prompt":{"fr":"","en":"Lorvik has an expense of €22,700 for its long-service awards (service cost €15,000, interest €4,200, actuarial loss €3,500). Record the year's expense entry.","es":""},"explanation":{"fr":"","en":"Debit staff costs €22,700 (actuarial loss included); credit liability €22,700. Nothing in other comprehensive income.","es":""},"common_error":{"fr":"","en":"Debiting €3,500 to other comprehensive income.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Staff costs","es":""}},{"id":"liab","text":{"fr":"","en":"Other long-term benefit liability","es":""}},{"id":"oci","text":{"fr":"","en":"Other comprehensive income","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":22700,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":22700,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000088","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"TERMINATION_DATE_RESTRICTION","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-termination"},"references":["IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"On 15 November Marnaud offers a payment to workshop employees who agree to leave. On 20 November a signed collective agreement makes the offer irrevocable for the entity. One employee accepts on 2 December. On what date is that employee's payment recognised (ignoring earlier IAS 37 restructuring costs)?","es":""},"explanation":{"fr":"","en":"For a voluntary offer, the date is the earlier of the employee's acceptance and the effective date of a restriction: here 20 November (IAS 19).","es":""},"common_error":{"fr":"","en":"Systematically using the acceptance date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The day the payment is made","es":""},"correct":false,"feedback":{"fr":"","en":"Payment settles the liability; it does not create it.","es":""}},{"id":"B","text":{"fr":"","en":"2 December, the employee's acceptance date","es":""},"correct":false,"feedback":{"fr":"","en":"Acceptance is the date used only if it precedes the effective date of a restriction; here the restriction comes first.","es":""}},{"id":"C","text":{"fr":"","en":"20 November, when the restriction takes effect","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"15 November, the date of the offer","es":""},"correct":false,"feedback":{"fr":"","en":"At the offer the entity can still withdraw it: no liability exists yet.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000089","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"TERMINATION_AMOUNT","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"numeric-termination"},"references":["IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"Lorvik offered €14,500 to each employee who would agree to leave; 16 employees accepted before the reporting date; payments will be made in three months. Calculate the liability to recognise at the reporting date.","es":""},"explanation":{"fr":"","en":"16 × 14,500 = €232,000; settlement within twelve months: no discounting (IAS 19). Employees who have not accepted give rise to no liability.","es":""},"common_error":{"fr":"","en":"Recognising the payment for every workshop employee, accepting or not.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Payment per employee","es":""},"value":"14500","unit":"EUR"},{"label":{"fr":"","en":"Acceptances before the reporting date","es":""},"value":"16","unit":"employees"}],"steps":[{"id":"a1","label":{"fr":"","en":"Liability at the reporting date (undiscounted)","es":""},"answer":232000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Liability at the reporting date (undiscounted)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acceptances before the reporting date","es":""},"value":16,"unit":"employees"},{"symbol":"b","meaning":{"fr":"","en":"Payment per employee","es":""},"value":14500,"unit":"EUR"}],"result":232000,"unit":"EUR"}],"references":["REF.IAS19.165"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000090","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"TERMINATION_PRESENT_VALUE","difficulty":"ADVANCED","estimated_time_s":130,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"numeric-termination"},"references":["IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"A termination payment of €150,000, recognised at the reporting date, will be settled in full in three years (case data). Discount rate: 5%. Calculate the liability to recognise (rounded to the cent) and the gap with the nominal amount.","es":""},"explanation":{"fr":"","en":"150,000 ÷ 1.05³ = €129,575.64; gap 150,000 − 129,575.64 = €20,424.36. Rule to remember: if benefits are not settled within twelve months, the rules for other long-term benefits apply, including discounting (IAS 19).","es":""},"common_error":{"fr":"","en":"Recognising the nominal amount without discounting.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Nominal amount","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Maturity","es":""},"value":"3","unit":"years"},{"label":{"fr":"","en":"Rate","es":""},"value":"5","unit":"%"}],"steps":[{"id":"a1","label":{"fr":"","en":"Discounted liability","es":""},"answer":129575.64,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Gap with the nominal amount","es":""},"answer":20424.36,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a2","meaning":{"fr":"","en":"Gap with the nominal amount","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Nominal amount","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discounted liability","es":""},"value":129575.64,"unit":"EUR"}],"result":20424.36,"unit":"EUR"}],"rationale":{"fr":"","en":"if benefits are not settled within twelve months, the rules for other long-term benefits apply, including discounting (IAS 19).","es":""},"references":["REF.IAS19.165"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000091","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"TERMINATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"numeric-termination"},"references":["IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"Lorvik must recognise €232,000 of termination benefits (16 acceptances of €14,500), settled within twelve months. Record the entry.","es":""},"explanation":{"fr":"","en":"Debit expense €232,000; credit liability €232,000 on the date the offer can no longer be withdrawn; cash is credited only on payment.","es":""},"common_error":{"fr":"","en":"Crediting cash although payment has not occurred.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Termination benefits (expense)","es":""}},{"id":"liab","text":{"fr":"","en":"Termination benefit liability","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":232000,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":232000,"given":["side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000092","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.INTERACTIONS.IAS37","IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"TERMINATION_VS_IAS37_TIMELINE","difficulty":"ADVANCED","estimated_time_s":140,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-ias37"},"references":["IAS 19","IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"Marnaud notifies on 5 December departures that can no longer be withdrawn; the restructuring plan meets the IAS 37 criteria on 20 December. Which recognition dates apply?","es":""},"explanation":{"fr":"","en":"The benefits follow the earlier of the two dates (5 December) and may therefore precede other restructuring costs, recognised under IAS 37 (20 December) (IAS 19, para. 165).","es":""},"common_error":{"fr":"","en":"Aligning the date of departure payments with IAS 37.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Everything on 20 December, as IAS 37 absorbs departure payments","es":""},"correct":false,"feedback":{"fr":"","en":"Termination benefits fall under IAS 19 and are recognised at the earlier of the two dates.","es":""}},{"id":"B","text":{"fr":"","en":"Everything on 5 December, including lease-termination penalties","es":""},"correct":false,"feedback":{"fr":"","en":"Other restructuring costs follow the IAS 37 criteria, met on 20 December.","es":""}},{"id":"C","text":{"fr":"","en":"No recognition before payment in January","es":""},"correct":false,"feedback":{"fr":"","en":"The liability arises before payment, on the date the offer can no longer be withdrawn.","es":""}},{"id":"D","text":{"fr":"","en":"Departure payments on 5 December; other restructuring costs on 20 December","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000093","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.INTERACTIONS.IAS37"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MANUFACTURING","tested_point":"IAS37_BOUNDARY_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IAS19.000012","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-ias37"},"references":["IAS 19"],"exercise":{"prompt":{"fr":"","en":"Classify each cost of a Marnaud restructuring plan by the standard that deals with it (IAS 19).","es":""},"explanation":{"fr":"","en":"Payments to employees linked to the end of the contract fall under IAS 19; the other costs of the restructuring (leases, suppliers) stay within the scope of IAS 37 (IAS 19).","es":""},"common_error":{"fr":"","en":"Classifying payments to employees under IAS 37.","es":""},"format":"CLASSIFICATION","categories":[{"id":"i19","text":{"fr":"","en":"IAS 19: termination benefits","es":""}},{"id":"i37","text":{"fr":"","en":"IAS 37: other restructuring costs","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Payment made to employees who agree to leave","es":""},"category":"i19"},{"id":"i2","text":{"fr":"","en":"Penalty for early termination of the closed factory's lease","es":""},"category":"i37"},{"id":"i3","text":{"fr":"","en":"Dismissal payment made to employees whose contract the company ends","es":""},"category":"i19"},{"id":"i4","text":{"fr":"","en":"Compensation owed to a supplier for cancelling an order linked to the closure","es":""},"category":"i37"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000094","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DISCLOSURE.OBJECTIVE_AND_STRUCTURE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DISCLOSURE_OBJECTIVE","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IAS19.000013","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"rule-objective"},"references":["IAS 19 §135"],"exercise":{"prompt":{"fr":"","en":"What is the objective of disclosures about defined benefit plans (IAS 19)?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): three aims, characteristics and risks, amounts, future cash flows.","es":""},"common_error":{"fr":"","en":"Seeing disclosures as a mere duplicate of the balance sheet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To reproduce the plan's internal rules in the notes","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures describe the useful characteristics, not the entire rulebook.","es":""}},{"id":"B","text":{"fr":"","en":"To explain the plans' characteristics and risks, the amounts recognised and the effect on future cash flows","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To replace the recognition of the net liability on the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures complement recognition; they do not replace it.","es":""}},{"id":"D","text":{"fr":"","en":"To justify the choice of the discount rate against competitors'","es":""},"correct":false,"feedback":{"fr":"","en":"Comparison with competitors is not the objective; the aim is to explain the entity's own plan.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000095","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DISCLOSURE.OBJECTIVE_AND_STRUCTURE"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"DISCLOSURE_FAMILIES_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000013","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"example"},"references":["IAS 19 §135"],"exercise":{"prompt":{"fr":"","en":"Match each Yarrow SA disclosure with its family of information (IAS 19).","es":""},"explanation":{"fr":"","en":"The three families of information are characteristics and risks, amounts and future flows (IAS 19); the inventory measurement method is not one of them.","es":""},"common_error":{"fr":"","en":"Placing an item in the wrong family without reading its content.","es":""},"format":"MATCHING","left":[{"id":"l1","text":{"fr":"","en":"Description of the plan and longevity risk","es":""}},{"id":"l2","text":{"fr":"","en":"Reconciliation of the obligation between opening and closing","es":""}},{"id":"l3","text":{"fr":"","en":"Contributions expected for the following year","es":""}}],"right":[{"id":"r1","text":{"fr":"","en":"Characteristics and risks","es":""}},{"id":"r2","text":{"fr":"","en":"Amounts recognised","es":""}},{"id":"r3","text":{"fr":"","en":"Future cash flows","es":""}},{"id":"r4","text":{"fr":"","en":"Inventory measurement method","es":""}}],"pairs":[{"left":"l1","right":"r1"},{"left":"l2","right":"r2"},{"left":"l3","right":"r3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000096","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DISCLOSURE.SENSITIVITY_AND_RECONCILIATIONS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"SENSITIVITY_WHICH_ASSUMPTIONS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IAS19.000013","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"rule-sensitivity"},"references":["IAS 19 §145"],"exercise":{"prompt":{"fr":"","en":"For which actuarial assumptions is a sensitivity analysis expected (IAS 19)?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): one sensitivity analysis per significant actuarial assumption, with reasonably possible changes.","es":""},"common_error":{"fr":"","en":"Limiting sensitivity to the discount rate alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For each significant assumption: rate, salaries, mortality","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"For the discount rate, the other assumptions being deemed without effect","es":""},"correct":false,"feedback":{"fr":"","en":"Every significant assumption is concerned, not only the rate.","es":""}},{"id":"C","text":{"fr":"","en":"For no assumption, since the obligation is a figure given by the actuary","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis exists precisely because the obligation depends on uncertain assumptions.","es":""}},{"id":"D","text":{"fr":"","en":"For each covered employee, on the basis of personal data","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis concerns assumptions for the whole plan, not employees one by one.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000097","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.DISCLOSURE.SENSITIVITY_AND_RECONCILIATIONS"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"SENSITIVITY_EFFECT_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IAS19.000013","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"rule-sensitivity"},"references":["IAS 19 §145"],"exercise":{"prompt":{"fr":"","en":"Values supplied by Zenvir's actuary: reference obligation at 5.0%: €8,200,000; at 5.5%: €7,810,000; at 4.5%: €8,655,000. Calculate the effect on the obligation of a 0.5-point rise then fall in the rate (fall in the obligation = negative).","es":""},"explanation":{"fr":"","en":"7,810,000 − 8,200,000 = −€390,000; 8,655,000 − 8,200,000 = +€455,000: the effect is not symmetrical.","es":""},"common_error":{"fr":"","en":"Assuming that the effect of a fall is the opposite of the effect of a rise.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Obligation at 5.0%","es":""},"value":"8200000","unit":"EUR"},{"label":{"fr":"","en":"Obligation at 5.5%","es":""},"value":"7810000","unit":"EUR"},{"label":{"fr":"","en":"Obligation at 4.5%","es":""},"value":"8655000","unit":"EUR"}],"steps":[{"id":"a1","label":{"fr":"","en":"Effect of a 0.5-point rise","es":""},"answer":-390000,"tolerance":0,"unit":"EUR"},{"id":"a2","label":{"fr":"","en":"Effect of a 0.5-point fall","es":""},"answer":455000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a1","meaning":{"fr":"","en":"Effect of a 0.5-point rise","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Obligation at 5.5%","es":""},"value":7810000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Obligation at 5.0%","es":""},"value":8200000,"unit":"EUR"}],"result":-390000,"unit":"EUR"}],"references":["REF.IAS19.145"]}},"scope":"CORE_STUDENT"},{"key":"LX.IAS19.000098","source":"V2","standard_id":"IAS19","concept_ids":["IAS19.INTERACTIONS.IFRS18"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"IFRS18_APPROACH","difficulty":"INTERMEDIATE","estimated_time_s":100,"lesson_id":"LS.IAS19.000013","review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"rule-ifrs18"},"references":["IAS 19"],"exercise":{"prompt":{"fr":"","en":"A colleague claims to know \"the new presentation of IAS 19 cost components arising from IFRS 18\" and wants to apply it. Which approach is correct (professional level)?","es":""},"explanation":{"fr":"","en":"IFRS 18's consequential amendments are read in the applicable version; without that reading, no treatment is applied.","es":""},"common_error":{"fr":"","en":"Applying a content without having read it in the applicable version.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ignore IFRS 18 for IAS 19, which is not concerned","es":""},"correct":false,"feedback":{"fr":"","en":"Consequential amendments from IFRS 18 affect IAS 19; they are not ignored.","es":""}},{"id":"B","text":{"fr":"","en":"Change the measurement of the obligation, because IFRS 18 changes how plans are measured","es":""},"correct":false,"feedback":{"fr":"","en":"The point to check concerns presentation, not the measurement of the obligation.","es":""}},{"id":"C","text":{"fr":"","en":"Apply right away what the colleague recalls, since IFRS 18 prevails over any other reading","es":""},"correct":false,"feedback":{"fr":"","en":"A presentation merely assumed is not a basis: the applicable version must be read.","es":""}},{"id":"D","text":{"fr":"","en":"Check the applicable version of IAS 19 and its consequential amendments","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000001","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000001","tested_point":"QST.IAS19.000001","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-categories"},"references":["IAS 19 §8","IAS 19 §11","IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"Orvale SA grants several benefits to its employees. Which of these pairings of a benefit with its employee-benefit category is correct?","es":""},"explanation":{"fr":"","en":"Employee benefits are classified by their nature and their settlement date, not by their label or their form of payment: short-term, post-employment, other long-term and termination benefits. The payment offered in return for an early departure is a termination benefit (IAS 19, para. 165). Trap: Classifying a benefit by its name or its form of payment rather than by its nature and settlement date. Rule to remember: Four categories, determined by the nature of the benefit and its settlement date (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Classifying the benefit by its label or its form of payment, without examining its nature and its settlement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The supplementary pension plan, funded by monthly payments from the employer to an outside body, is a short-term employee benefit.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a supplementary pension is paid after employment ends. The employer's monthly payments fund it but do not make it due within the year: it is a post-employment benefit, whereas short-term benefits are settled shortly after the services are rendered (IAS 19, para. 11).","es":""}},{"id":"B","text":{"fr":"","en":"The payment offered to employees who agree to leave the entity before retirement age is a termination benefit.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The thirteenth-month salary paid in December for the year's services is a post-employment benefit.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the thirteenth-month salary pays for the year's services and is settled within the following months; it is a short-term benefit, recognised at the undiscounted amount (IAS 19, para. 11). Paying it at the end of the year does not turn it into a post-employment benefit.","es":""}},{"id":"D","text":{"fr":"","en":"The seniority bonus paid every five years is a short-term benefit, because it is paid in cash.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the form of payment does not determine the category. A bonus payable every five years is settled well beyond the year following the services rendered; it is an other long-term benefit, not a short-term benefit (IAS 19, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000002","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000002","tested_point":"QST.IAS19.000002","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-categories"},"references":["IAS 19 §11"],"exercise":{"prompt":{"fr":"","en":"An annual bonus that pays for the year's services and is paid in March of the following year is an other long-term benefit, since payment falls after the reporting date.","es":""},"explanation":{"fr":"","en":"A bonus that pays for the year's services and is settled in the following months is a short-term benefit, recognised at the undiscounted amount (IAS 19, para. 11). The fact that payment falls after the reporting date does not change the category; what matters is the settlement date relative to the services rendered. Trap: Treating a payment made after the reporting date as a long-term benefit. Rule to remember: A benefit settled shortly after the services are rendered is a short-term benefit, even if it is paid after the reporting date (IAS 19, para. 11).","es":""},"common_error":{"fr":"","en":"Treating any benefit paid after the reporting date as a long-term benefit.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000003","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000003","tested_point":"QST.IAS19.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-scope"},"references":["IAS 19 §2"],"exercise":{"prompt":{"fr":"","en":"Cerval SA grants its managers options to subscribe for its own shares in exchange for their services. Which standard deals with this remuneration?","es":""},"explanation":{"fr":"","en":"Remuneration settled in the entity's own equity instruments falls under IFRS 2 and outside the scope of IAS 19 (IAS 19, para. 2). Cerval's options are part of it. Trap: Applying IAS 19 to any remuneration of managers, whatever the form of its settlement. Rule to remember: Remuneration in the entity's own equity instruments falls outside the scope of IAS 19 (IAS 19, para. 2).","es":""},"common_error":{"fr":"","en":"Applying IAS 19 to remuneration settled in the entity's own equity instruments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IAS 19, because any remuneration of managers is an employee benefit, whatever the form of settlement chosen.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the form of settlement matters. Remuneration settled in the entity's own equity instruments is not an employee benefit within the meaning of IAS 19; it falls under IFRS 2, which the scope of IAS 19 excludes (IAS 19, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 26, which sets the accounting for remuneration paid to managers by the entity, including options.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 26 deals with the financial reporting produced by retirement benefit plans themselves, not with the accounting by an employer for the remuneration of its managers. It does not apply to Cerval's options, which fall under IFRS 2 (IAS 19, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 37, because the commitment to grant options is a provision for staff costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: an option granted to a manager in exchange for services is not an IAS 37 provision; this type of remuneration has its own standard, IFRS 2. The scope of IAS 19 leaves it aside (IAS 19, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 2, which deals separately with remuneration settled in equity instruments.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000004","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.ACCRUAL_UNDISCOUNTED"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000004","tested_point":"QST.IAS19.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-accrual"},"references":["IAS 19 §11"],"exercise":{"prompt":{"fr":"","en":"The December salaries of Pelmont SA, payable on 10 January, are recognised at the 31 December reporting date at their undiscounted amount: the settlement period is too short to justify discounting.","es":""},"explanation":{"fr":"","en":"Expected short-term benefits for services rendered are recognised at the undiscounted amount, as a liability and an expense; given their timing, no discounting is applied (IAS 19, para. 11). The December salaries, payable ten days after the reporting date, follow this rule. Trap: Discounting a short-term benefit or waiting for its payment to recognise it. Rule to remember: A short-term benefit is recognised at its undiscounted amount, as the services are rendered (IAS 19, para. 11).","es":""},"common_error":{"fr":"","en":"Discounting a short-term benefit, or recognising it only when it is paid.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000005","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.ACCRUAL_UNDISCOUNTED"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000005","tested_point":"QST.IAS19.000005","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-accrual"},"references":["IAS 19 §11"],"exercise":{"prompt":{"fr":"","en":"Delmar SA closes its books on 31 December. December salaries ({salaries}), December overtime ({overtime}) and the transport allowance due for December ({transport}) will be paid on 8 January. January salaries ({january_salaries}) will pay for services of the following year. Calculate the short-term benefit liability to recognise at 31 December, without discounting.","es":""},"explanation":{"fr":"","en":"Method: liability = December salaries 412,000 + overtime 36,500 + transport allowance 21,500 = 470,000. These benefits are recognised at the undiscounted amount (IAS 19, para. 11): settlement expected within days does not justify any discounting. January salaries pay for the following year, so they are excluded. Trap: Including January salaries or discounting amounts payable within days. Rule to remember: The short-term benefit liability is the sum of the undiscounted amounts due for the services already rendered (IAS 19, para. 11).","es":""},"common_error":{"fr":"","en":"Including January salaries in the liability, or discounting amounts payable within days.","es":""},"format":"CALCULATION","placeholders":[{"id":"salaries","value":"412000","unit":"EUR"},{"id":"overtime","value":"36500","unit":"EUR"},{"id":"transport","value":"21500","unit":"EUR"},{"id":"january_salaries","value":"405000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"December salaries","es":""},"value":"412000","unit":"EUR"},{"label":{"fr":"","en":"December overtime","es":""},"value":"36500","unit":"EUR"},{"label":{"fr":"","en":"Transport allowance due for December","es":""},"value":"21500","unit":"EUR"},{"label":{"fr":"","en":"January salaries (services of the following year)","es":""},"value":"405000","unit":"EUR"}],"steps":[{"id":"ACCRUED_LIABILITY","label":{"fr":"","en":"Short-term benefit liability at 31 December","es":""},"answer":470000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ACCRUED_LIABILITY","meaning":{"fr":"","en":"Short-term benefit liability at 31 December","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"December salaries","es":""},"value":412000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"December overtime","es":""},"value":36500,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Transport allowance due for December","es":""},"value":21500,"unit":"EUR"}],"result":470000,"unit":"EUR"}],"rationale":{"fr":"","en":"The short-term benefit liability is the sum of the undiscounted amounts due for the services already rendered (IAS 19, para. 11).","es":""},"references":["REF.IAS19.11"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000006","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.COMPENSATED_ABSENCES"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000006","tested_point":"QST.IAS19.000006","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-absences"},"references":["IAS 19 §13"],"exercise":{"prompt":{"fr":"","en":"Evrard SA has two paid-absence schemes: annual leave not taken, which can be carried forward to the following year, and sick leave, which does not accumulate and is paid only when an absence actually occurs. At the reporting date, 1,200 days of annual leave are carried forward and no employee is on sick leave. Which treatment is correct at the reporting date?","es":""},"explanation":{"fr":"","en":"Accumulating paid absences give rise to an obligation as the employee renders the services that increase the future entitlement, even if nothing is paid in cash at the outset; non-accumulating absences are recognised when the absence occurs (IAS 19, para. 13). Evrard therefore recognises the 1,200 carried-forward days, but not sick leave. Trap: Providing at the reporting date for non-accumulating sick leave, or ignoring the entitlement acquired through carried-forward leave. Rule to remember: Accumulating absences: liability as services are rendered; non-accumulating absences: recognition when the absence occurs (IAS 19, para. 13).","es":""},"common_error":{"fr":"","en":"Providing at the reporting date for non-accumulating sick leave, or waiting until carried-forward leave is taken to recognise it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Recognise a liability for the expected cost of the carried-forward annual leave, which increases future entitlement, and nothing for non-accumulating sick leave.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Recognise a liability for both schemes, because in both cases the employee acquires at the reporting date a paid right to be absent later in the following year.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: carried-forward annual leave increases the employee's future entitlement, which creates an obligation. Non-accumulating sick leave gives no right for the future: it is recognised only when the absence occurs, not at the reporting date (IAS 19, para. 13).","es":""}},{"id":"C","text":{"fr":"","en":"Wait until the carried-forward leave is actually taken before recognising its cost, for lack of a cash outflow at the reporting date, and recognise nothing for sick leave.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the absence of a cash outflow at the reporting date does not prevent an obligation. Carried-forward days increase the future entitlement as services are rendered; a liability therefore exists at the reporting date, even if the benefit is not settled in cash (IAS 19, para. 13).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise a liability for sick leave based on the average absences of the last three years, but not for the carried-forward annual leave.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the cost of non-accumulating sick leave is recognised only when the absence occurs, whatever the past average, whereas carried-forward annual leave does create a liability at the reporting date (IAS 19, para. 13). This answer swaps the two schemes.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000007","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.COMPENSATED_ABSENCES"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000007","tested_point":"QST.IAS19.000007","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000002","section_id":"rule-absences"},"references":["IAS 19 §13"],"exercise":{"prompt":{"fr":"","en":"Carvin SA has carried forward accumulating paid leave to the following year. The cost the entity expects to bear for the carried-forward days is {workshop} for the workshop, {offices} for the offices and {logistics} for logistics. Two other amounts appear in the file: {sick}, the cost of non-accumulating sick leave taken in December and already expensed, and {lapsing}, the cost of days earned that expire on 31 December with no carry-forward possible (case data). Calculate the liability to recognise at the reporting date for accumulating absences.","es":""},"explanation":{"fr":"","en":"Method: only the carried-forward days, which increase the future entitlement, give rise to a liability, measured at the cost expected for the entity: 58,400 + 21,300 + 15,800 = 95,500. Non-accumulating sick leave taken in December is already recognised when the absence occurs, and the days that expire without carry-forward increase no future entitlement (IAS 19, para. 13). Trap: Measuring the liability with amounts unrelated to the expected cost of the carried-forward days, or including non-accumulating absences. Rule to remember: Liability for accumulating absences = expected cost of the carried-forward days, excluding non-accumulating absences (IAS 19, para. 13).","es":""},"common_error":{"fr":"","en":"Including in the liability non-accumulating sick leave or days that expire with no carry-forward.","es":""},"format":"CALCULATION","placeholders":[{"id":"workshop","value":"58400","unit":"EUR"},{"id":"offices","value":"21300","unit":"EUR"},{"id":"logistics","value":"15800","unit":"EUR"},{"id":"sick","value":"7200","unit":"EUR"},{"id":"lapsing","value":"4100","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expected cost of carried-forward days, workshop","es":""},"value":"58400","unit":"EUR"},{"label":{"fr":"","en":"Expected cost of carried-forward days, offices","es":""},"value":"21300","unit":"EUR"},{"label":{"fr":"","en":"Expected cost of carried-forward days, logistics","es":""},"value":"15800","unit":"EUR"},{"label":{"fr":"","en":"Non-accumulating sick leave taken in December (already expensed)","es":""},"value":"7200","unit":"EUR"},{"label":{"fr":"","en":"Days earned that expire with no carry-forward","es":""},"value":"4100","unit":"EUR"}],"steps":[{"id":"ACCRUED_LIABILITY","label":{"fr":"","en":"Liability for accumulating absences","es":""},"answer":95500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"ACCRUED_LIABILITY","meaning":{"fr":"","en":"Liability for accumulating absences","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected cost of carried-forward days, workshop","es":""},"value":58400,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected cost of carried-forward days, offices","es":""},"value":21300,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Expected cost of carried-forward days, logistics","es":""},"value":15800,"unit":"EUR"}],"result":95500,"unit":"EUR"}],"rationale":{"fr":"","en":"Liability for accumulating absences = expected cost of the carried-forward days, excluding non-accumulating absences (IAS 19, para. 13).","es":""},"references":["REF.IAS19.13"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000008","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000008","tested_point":"QST.IAS19.000008","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"rule"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"Garnel SA has paid for eight years an annual bonus equal to one month's salary, announced in December by an internal note, with no contractual clause or written commitment. In N, the board decided no withdrawal and management is not considering one; the formula (one month's salary) is known (case facts). Which conclusion is correct at the end of N?","es":""},"explanation":{"fr":"","en":"An entity can have a constructive obligation to pay a bonus without a legal obligation when its past practice leaves it no realistic alternative; the cost is recognised as soon as there is a legal or constructive obligation and the amount can be estimated reliably (IAS 19, para. 19). Whether a constructive obligation exists is a professional judgement based on the facts: here, eight years of consistent practice, a known formula and no decision to withdraw. Trap: Ruling out any obligation for lack of a written commitment despite a consistent practice. Rule to remember: A consistent practice with no realistic alternative creates a constructive obligation, recognised if the amount is reliable (IAS 19, para. 19).","es":""},"common_error":{"fr":"","en":"Concluding there is no obligation solely because there is no clause or written commitment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"There is no obligation, for lack of a contractual clause or written commitment: the bonus will be recognised when paid, in the following year, whatever Garnel's practice over the eight years.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the absence of a clause or written commitment does not rule out an obligation. A consistent eight-year practice can create a constructive obligation, recognised at the reporting date if the amount is reliable, without waiting for payment (IAS 19, para. 19).","es":""}},{"id":"B","text":{"fr":"","en":"The obligation arises when the board votes the amount of the bonus, after the reporting date; before that vote, the bonus is not a liability and no expense is recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the board's vote is not the only source of obligation. An established past practice with no realistic alternative is enough to create a constructive obligation before any vote; the liability therefore exists at the reporting date (IAS 19, para. 19).","es":""}},{"id":"C","text":{"fr":"","en":"There is a constructive obligation, because the consistent practice leaves Garnel no realistic alternative but to pay the bonus; the cost is recognised if it can be estimated reliably.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A constructive obligation exists, but it is recognised when the bonus is paid, because the bonus is a long-term benefit and not a short-term benefit.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the annual bonus pays for the year's services and is paid shortly afterwards; it is a short-term benefit, recognised as the services are rendered and not only when paid. The constructive obligation is recognised at the reporting date (IAS 19, para. 19).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000010","standard_id":"IAS19","concept_ids":["IAS19.SHORT_TERM.PROFIT_SHARING_BONUS"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000010","tested_point":"QST.IAS19.000010","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000003","section_id":"rule"},"references":["IAS 19 §19"],"exercise":{"prompt":{"fr":"","en":"The bonus plan of Joran SA provides for a bonus equal to {bonus_percent} of profit after bonus. The profit for the year before bonus is {profit_before}. The constructive obligation is established and the amount can be estimated reliably (case facts). Calculate the profit after bonus, then the bonus to recognise at the reporting date.","es":""},"explanation":{"fr":"","en":"Method: the bonus B equals 4% of profit after bonus, that is B = 4% × (5,200,000 − B). Profit after bonus is therefore 5,200,000 ÷ 1.04 = 5,000,000, and the bonus 4% × 5,000,000 = 200,000. The cost is recognised once the obligation is established and the amount reliable (IAS 19, para. 19); the calculation base (profit after bonus) is data from the case's plan formula. Trap: Applying 4% to profit before bonus (208,000) when the plan formula refers to profit after bonus. Rule to remember: The bonus follows the plan formula: the base it refers to (here profit after bonus) fixes the calculation (IAS 19, para. 19).","es":""},"common_error":{"fr":"","en":"Applying the percentage to profit before bonus when the plan formula refers to profit after bonus.","es":""},"format":"CALCULATION","placeholders":[{"id":"profit_before","value":"5200000","unit":"EUR"},{"id":"bonus_percent","value":"4","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Profit for the year before bonus","es":""},"value":"5200000","unit":"EUR"},{"label":{"fr":"","en":"Bonus percentage (plan formula), applied to profit after bonus","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"PROFIT_AFTER_BONUS","label":{"fr":"","en":"Profit after bonus","es":""},"answer":5000000,"tolerance":0,"unit":"EUR"},{"id":"BONUS","label":{"fr":"","en":"Bonus to recognise","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_AFTER_BONUS","meaning":{"fr":"","en":"Profit after bonus","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Profit for the year before bonus","es":""},"value":5200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Bonus percentage (plan formula), applied to profit after bonus","es":""},"value":4,"unit":"PERCENT"}],"result":5000000,"unit":"EUR"},{"step":"BONUS","meaning":{"fr":"","en":"Bonus to recognise","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Bonus percentage (plan formula), applied to profit after bonus","es":""},"value":4,"unit":"PERCENT"},{"symbol":"b","meaning":{"fr":"","en":"Profit after bonus","es":""},"value":5000000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"The bonus follows the plan formula: the base it refers to (here profit after bonus) fixes the calculation (IAS 19, para. 19).","es":""},"references":["REF.IAS19.19"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000011","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_VS_DB_CLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000011","tested_point":"QST.IAS19.000011","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-classification"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"Whenever the assets of a retirement plan are held in a fund legally separate from the employer, the plan is a defined contribution plan.","es":""},"explanation":{"fr":"","en":"A plan is a defined contribution plan when the employer pays fixed contributions to a separate entity; any plan that is not a defined contribution plan is a defined benefit plan (IAS 19, para. 8). A separate fund holding the assets therefore does not settle the question: one must look at whether the employer keeps a commitment beyond the fixed contributions. Trap: Concluding that a plan is a defined contribution plan because a separate fund exists. Rule to remember: The classification follows the employer's commitments, not the existence of a separate fund (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Classifying a plan by the existence of a separate fund rather than by the employer's commitments.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000012","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_VS_DB_CLASSIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000012","tested_point":"QST.IAS19.000012","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-classification"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"Lunor SA pays each year 5% of salaries into a separate fund, which pays each retiree a pension equal to 1.5% of the final salary per year of service. The rules provide that Lunor tops up the fund if its assets are not enough to pay the promised pensions (case facts). Which classification is correct?","es":""},"explanation":{"fr":"","en":"A plan is a defined contribution plan when the employer pays fixed contributions to a separate entity; any plan that is not a defined contribution plan is a defined benefit plan (IAS 19, para. 8). Here, Lunor committed in its rules to top up the fund if the assets are insufficient: its commitment goes beyond fixed contributions. The classification is a professional judgement based on the terms of the plan and on this commitment. Trap: Classifying the plan by the contribution rate or the existence of a separate fund, without examining the top-up obligation. Rule to remember: A commitment to top up the fund beyond fixed contributions makes the plan a defined benefit plan (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Classifying the plan as defined contribution by the contribution rate or the existence of a separate fund.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Defined contribution plan, because Lunor pays 5% of salaries each year into a fund that is separate from the employer.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the 5% rate describes the annual payment, not the extent of the commitment. Since Lunor must top up the fund if it falls short, it carries a commitment beyond fixed contributions; the plan is a defined benefit plan (IAS 19, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"Defined contribution plan, because the assets are held in a separate fund, which itself pays the pensions to retirees.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the existence of a separate fund that pays the pensions is not enough to classify the plan. As Lunor must top up the fund if its assets are insufficient, it bears the risk; the plan is a defined benefit plan (IAS 19, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"Defined benefit plan: Lunor keeps the commitment to top up the fund.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Defined contribution plan as long as the fund is in surplus; the classification changes if a deficit arises in the fund.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the classification does not vary with the fund's position from one year to the next. It follows the terms of the plan: the commitment to top up the fund exists from the outset, whether there is a surplus or a deficit, and makes the plan a defined benefit plan (IAS 19, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000014","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_ACCOUNTING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000014","tested_point":"QST.IAS19.000014","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-dc"},"references":["IAS 19 §51"],"exercise":{"prompt":{"fr":"","en":"Dalen SA takes part in a defined contribution plan: it must pay 6% of the year's salaries and has no legal or constructive obligation to pay more (case facts). Its expense for the year equals the contributions due for services rendered during the year, and it does not provide for future benefits.","es":""},"explanation":{"fr":"","en":"For a defined contribution plan, contributions are recognised for the period in which the member renders the service (IAS 19, para. 51). According to the case facts, Dalen has no legal or constructive obligation beyond the 6% contribution: the expense for the year is the contribution due, and no liability is recognised for future benefits. Trap: Providing for a deficit or a future commitment under a plan that requires only fixed contributions. Rule to remember: Defined contribution plan: expense = contribution due for the period, with no provision for future benefits (IAS 19, para. 51).","es":""},"common_error":{"fr":"","en":"Providing for future benefits or a deficit under a plan that requires only fixed contributions.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000015","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_ACCOUNTING"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000015","tested_point":"QST.IAS19.000015","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-dc"},"references":["IAS 19 §51"],"exercise":{"prompt":{"fr":"","en":"Nordane SA takes part in a defined contribution plan and pays {contrib_rate} of pensionable salaries, with no other commitment (case facts). For the year, pensionable salaries amount to {pensionable}; total payroll is {total_payroll}, because it includes bonuses that the plan rules exclude from the base. Calculate the expense for the year in respect of the plan.","es":""},"explanation":{"fr":"","en":"Method: contribution = pensionable salaries 3,280,000 × 6.5% = 213,200. The base is the one set by the plan rules: total payroll of 3,650,000 includes non-pensionable bonuses and is not the base. The contribution due is recognised for the period in which employees render their services (IAS 19, para. 51). Trap: Applying the rate to total payroll (237,250) instead of the base set by the plan rules. Rule to remember: Defined contribution plan: expense = contribution rate × base set by the rules, for the service period (IAS 19, para. 51).","es":""},"common_error":{"fr":"","en":"Applying the contribution rate to total payroll instead of the base set by the plan rules.","es":""},"format":"CALCULATION","placeholders":[{"id":"pensionable","value":"3280000","unit":"EUR"},{"id":"contrib_rate","value":"6.5","unit":"PERCENT"},{"id":"total_payroll","value":"3650000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Pensionable salaries for the year","es":""},"value":"3280000","unit":"EUR"},{"label":{"fr":"","en":"Contribution rate on pensionable salaries","es":""},"value":"6.5","unit":"PERCENT"},{"label":{"fr":"","en":"Total payroll (non-pensionable bonuses included)","es":""},"value":"3650000","unit":"EUR"}],"steps":[{"id":"CONTRIBUTION","label":{"fr":"","en":"Expense for the year (contribution due)","es":""},"answer":213200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CONTRIBUTION","meaning":{"fr":"","en":"Expense for the year (contribution due)","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Pensionable salaries for the year","es":""},"value":3280000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Contribution rate on pensionable salaries","es":""},"value":6.5,"unit":"PERCENT"}],"result":213200,"unit":"EUR"}],"rationale":{"fr":"","en":"Defined contribution plan: expense = contribution rate × base set by the rules, for the service period (IAS 19, para. 51).","es":""},"references":["REF.IAS19.51"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000016","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.MULTI_EMPLOYER_PLANS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000016","tested_point":"QST.IAS19.000016","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"rule-multi"},"references":["IAS 19 §32"],"exercise":{"prompt":{"fr":"","en":"Sablet SA takes part in an industry-wide multi-employer plan that promises defined benefits to the employees of several companies. The plan administrator does not give Sablet the information needed to determine its share of the obligation, the assets and the cost (case facts). Which treatment is consistent in Sablet's accounts?","es":""},"explanation":{"fr":"","en":"The classification of a plan follows its terms; a multi-employer defined benefit plan is accounted for using the entity's proportionate share, and treated as a defined contribution plan when the information is insufficient (IAS 19, paras. 32 to 34). Sablet does not receive the information needed: it therefore recognises its contribution for the period as an expense. Whether the information is sufficient is a professional judgement. Trap: Accounting for a multi-employer defined benefit plan as a defined contribution plan without checking whether the information is sufficient, or the reverse. Rule to remember: Proportionate share if the information allows it; treatment as a defined contribution plan if it is insufficient (IAS 19, paras. 32 to 34).","es":""},"common_error":{"fr":"","en":"Accounting for a multi-employer defined benefit plan without examining whether the information is enough to compute the share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Account for the plan as a defined contribution plan, the expense being the contribution for the period, for lack of enough information to apply the proportionate share.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Account for a share estimated pro rata to Sablet's headcount, without the administrator's information, as for a defined benefit plan, with a liability in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the proportionate share requires reliable information from the administrator. Without it, an estimate pro rata to headcount is not the intended treatment: the plan is treated as a defined contribution plan (IAS 19, paras. 32 to 34).","es":""}},{"id":"C","text":{"fr":"","en":"Recognise nothing, neither expense nor liability, until the plan administrator has provided the information needed for the share.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: Sablet pays contributions and receives services: the expense for the period exists. The lack of information leads to treating the plan as a defined contribution plan, not to suspending all recognition (IAS 19, paras. 32 to 34).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise the whole deficit of the industry plan, since Sablet takes part in a plan whose benefits are defined.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: Sablet is not answerable for the whole deficit of a plan shared with other employers. The standard retains the entity's proportionate share, or, for lack of enough information, treatment as a defined contribution plan (IAS 19, paras. 32 to 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000018","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.STATE_PLANS","IAS19.POST_EMPLOYMENT.MULTI_EMPLOYER_PLANS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000018","tested_point":"QST.IAS19.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"rule-multi"},"references":["IAS 19 §43","IAS 19 §32"],"exercise":{"prompt":{"fr":"","en":"A trainee must account for the contributions that Verane SA pays to the national retirement insurance plan, run by the State. Which approach is consistent with the place the standard gives to state plans?","es":""},"explanation":{"fr":"","en":"A state plan is accounted for in the same way as a multi-employer plan (IAS 19, para. 43); the classification of a plan follows its terms, including any constructive obligation going beyond the formal terms (IAS 19, para. 32). A state plan is therefore not automatically equated with an entity plan: its terms and the employer's commitment are examined. Trap: Treating a state plan as an entity plan without examining its terms. Rule to remember: A state plan is classified by its terms, like a multi-employer plan (IAS 19, para. 43).","es":""},"common_error":{"fr":"","en":"Treating a state plan as an entity plan, without examining its terms.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Apply the projected unit credit method by default, as for an entity defined benefit plan, without examining the terms of the plan or Verane's obligation towards its employees.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the standard gives state plans a separate section of the classification; applying to them automatically the method of an entity defined benefit plan, without reading the terms, does not respect that approach, because the classification follows the terms (IAS 19, paras. 43 and 32).","es":""}},{"id":"B","text":{"fr":"","en":"Recognise nothing, because a plan run by the State is outside the scope of employee benefits and does not concern the employer's accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the standard devotes a section to state plans within the classification of post-employment plans: they fall within its scope. Verane's contributions must therefore be analysed, not ignored (IAS 19, para. 43).","es":""}},{"id":"C","text":{"fr":"","en":"Recognise a liability for the future pensions of all Verane employees, since the State guarantees the plan on the employer's behalf.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a liability for future pensions presupposes a commitment by the employer; yet the classification follows the terms of the plan and any constructive obligation, which must be examined. The State's guarantee is not a commitment of Verane (IAS 19, paras. 43 and 32).","es":""}},{"id":"D","text":{"fr":"","en":"Classify the plan by its terms, Verane's constructive obligation included, following the section the standard devotes to state plans, without equating it automatically with an entity plan.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000019","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.INSURED_BENEFITS","IAS19.POST_EMPLOYMENT.MULTI_EMPLOYER_PLANS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000019","tested_point":"QST.IAS19.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000005","section_id":"rule-multi"},"references":["IAS 19 §46","IAS 19 §32"],"exercise":{"prompt":{"fr":"","en":"Rovane SA has taken out a group insurance policy that funds its employees' pensions. The policy covers only pensions already earned; Rovane has committed to employees to pay itself any pension the insurer would not cover (case facts). Which analysis is consistent with the treatment of insured benefits?","es":""},"explanation":{"fr":"","en":"A plan funded by insurance premiums is treated as a defined contribution plan unless the employer retains an obligation to pay the benefits itself or to pay further amounts (IAS 19, para. 46); the classification of a plan follows its terms, including any constructive obligation going beyond the formal terms (IAS 19, para. 32). The policy is not enough to conclude that the plan is defined contribution when the employer has committed to cover uninsured pensions. Trap: Concluding that a plan is defined contribution as soon as a policy is taken out, without examining the employer's residual commitment. Rule to remember: An insured plan is classified by its terms and the employer's residual commitment, not by the mere existence of a policy (IAS 19, para. 46).","es":""},"common_error":{"fr":"","en":"Concluding that a plan is defined contribution as soon as a policy is taken out, without examining the employer's commitment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The plan is a defined contribution plan from the moment the policy is taken out, because the employees' longevity risk is transferred to the insurer.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a policy does not transfer the risk by itself. Here Rovane committed to pay any uncovered pension: part of the risk remains with it, and the classification follows the terms of the plan, obligation included (IAS 19, paras. 46 and 32).","es":""}},{"id":"B","text":{"fr":"","en":"Taking out the policy is not enough to classify the plan as defined contribution: Rovane keeps a commitment to employees, to be examined from the terms of the plan.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The insurance premiums are expensed when paid, and there is no other treatment to examine for Rovane's plan.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: merely paying premiums does not close the analysis. The insured plan is still a plan to be classified by its terms; Rovane's commitment to cover uninsured pensions must be taken into account (IAS 19, paras. 46 and 32).","es":""}},{"id":"D","text":{"fr":"","en":"The classification depends on the insurer: if the insurer is known to be solvent, the plan is defined contribution and Rovane can stop examining it, whatever the content of the contract.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the insurer's solvency does not determine the classification. It follows the terms of the plan and any constructive obligation of the employer; Rovane's commitment remains whatever the quality of the insurer (IAS 19, paras. 46 and 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000020","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.NET_LIABILITY_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000020","tested_point":"QST.IAS19.000020","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-net"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"The deficit of a defined benefit plan is the present value of the defined benefit obligation, less the fair value of plan assets where there are any.","es":""},"explanation":{"fr":"","en":"The deficit or surplus of a plan is the present value of the defined benefit obligation less the fair value of plan assets, if any; the net defined benefit liability (asset) is that deficit or surplus adjusted for the effect of the asset ceiling (IAS 19, para. 8). Trap: Presenting the gross obligation without deducting plan assets. Rule to remember: Deficit or surplus = present value of the obligation − fair value of plan assets (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Presenting the gross obligation without deducting the fair value of plan assets.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000021","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.NET_LIABILITY_ASSET"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000021","tested_point":"QST.IAS19.000021","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-net"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"At 31 December, Bastide SA measures the obligation of its defined benefit plan at {dbo} (present value) and the fair value of plan assets at {assets}. The asset ceiling is not an issue (case data). Calculate the net defined benefit liability to present in the statement of financial position.","es":""},"explanation":{"fr":"","en":"Method: deficit = present value of the obligation 18,640,000 − fair value of plan assets 15,920,000 = 2,720,000. As the asset ceiling is not an issue, the net liability equals the deficit (IAS 19, para. 8). Trap: Presenting the gross obligation of 18,640,000 as a liability without deducting plan assets. Rule to remember: Net liability = present value of the obligation − fair value of plan assets, when the ceiling does not apply (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Presenting the gross obligation as a liability without deducting the fair value of plan assets.","es":""},"format":"CALCULATION","placeholders":[{"id":"dbo","value":"18640000","unit":"EUR"},{"id":"assets","value":"15920000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Present value of the defined benefit obligation","es":""},"value":"18640000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of plan assets","es":""},"value":"15920000","unit":"EUR"}],"steps":[{"id":"NET_LIABILITY","label":{"fr":"","en":"Net defined benefit liability","es":""},"answer":2720000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_LIABILITY","meaning":{"fr":"","en":"Net defined benefit liability","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the defined benefit obligation","es":""},"value":18640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of plan assets","es":""},"value":15920000,"unit":"EUR"}],"result":2720000,"unit":"EUR"}],"rationale":{"fr":"","en":"Net liability = present value of the obligation − fair value of plan assets, when the ceiling does not apply (IAS 19, para. 8).","es":""},"references":["REF.IAS19.8"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000022","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.NET_LIABILITY_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000022","tested_point":"QST.IAS19.000022","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-net"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"Corvane SA measures the obligation of its defined benefit plan at 7,850,000 (present value) and the fair value of plan assets at 8,300,000. The present value of the economic benefits available as refunds or reductions in future contributions, the asset ceiling, is 600,000 (case data). What does Corvane present in its statement of financial position for this plan?","es":""},"explanation":{"fr":"","en":"The deficit or surplus is the present value of the obligation less the fair value of plan assets; the net liability (asset) is that deficit or surplus adjusted for the effect of limiting the net asset to the asset ceiling (IAS 19, para. 8). Here: 7,850,000 − 8,300,000 = −450,000, that is a surplus of 450,000. It is below the ceiling of 600,000: no adjustment, the net asset is 450,000. Trap: Reversing the sign of the surplus or recognising the ceiling instead of the surplus. Rule to remember: A surplus is presented as a net asset, within the limit of the asset ceiling (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Reversing the sign of a surplus and presenting it as a liability, or recognising the ceiling instead of the surplus.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A net liability of 450,000: the difference between the obligation and the assets is presented as a liability, whatever its sign.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the sign matters. The assets exceed the obligation by 450,000: this is a surplus, hence a net asset, not a net liability. Reversing the sign of the deficit or surplus is a frequent slip (IAS 19, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"A net liability of 7,850,000, the gross obligation, with the plan assets presented separately in Corvane's statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the net liability is measured net of plan assets, not on the gross obligation. Here the assets even exceed the obligation: there is a surplus of 450,000, hence a net asset (IAS 19, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"A net asset of 600,000, equal to the asset ceiling, which limits the net asset even when the surplus is smaller.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the asset ceiling is an upper limit, not an amount to recognise. The surplus of 450,000 is below the ceiling of 600,000: the net asset does not exceed the surplus, it is 450,000 (IAS 19, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"A net asset of 450,000, equal to the plan surplus, which is lower than the asset ceiling of 600,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000023","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PROJECTED_UNIT_CREDIT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000023","tested_point":"QST.IAS19.000023","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-puc"},"references":["IAS 19 §67"],"exercise":{"prompt":{"fr":"","en":"Which sentence correctly describes the projected unit credit method used to measure the obligation of a defined benefit plan?","es":""},"explanation":{"fr":"","en":"The projected unit credit method is the method to use to determine the present value of the defined benefit obligation and the current service cost: each period of service gives rise to an additional unit of benefit entitlement, measured separately, with the benefits projected and then discounted (IAS 19, paras. 67 and 68). Trap: Discounting the total final benefit without attributing it to periods of service, or using another method. Rule to remember: One unit of benefit per period of service, measured separately, projected then discounted (IAS 19, paras. 67 and 68).","es":""},"common_error":{"fr":"","en":"Discounting the total final benefit without attributing it to periods of service, or using another method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The obligation is the present value of the total benefit expected at retirement, whatever the service earned at the measurement date, with no attribution to periods of service.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: discounting the total final benefit without attributing it to periods of service overstates the obligation at a given date. The method measures separately the unit of benefit of each period of service (IAS 19, paras. 67 and 68).","es":""}},{"id":"B","text":{"fr":"","en":"Each period of service gives rise to a unit of benefit, measured separately; the projected benefits are discounted.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The obligation equals the sum of the contributions already paid by the employer and by members, capitalised at the fund's rate of return.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the obligation is not an accumulation of capitalised contributions. It is the present value of the promised benefits, determined by the projected unit credit method, independently of the fund's return (IAS 19, paras. 67 and 68).","es":""}},{"id":"D","text":{"fr":"","en":"The obligation is the surrender value of the rights at the measurement date, calculated from the tariffs of the insurer running the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: an insurer's surrender value is not the method intended for the obligation. The standard uses projected unit credit, with a unit of benefit per period of service, projected then discounted (IAS 19, paras. 67 and 68).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000024","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PROJECTED_UNIT_CREDIT"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000024","tested_point":"QST.IAS19.000024","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-puc"},"references":["IAS 19 §67"],"exercise":{"prompt":{"fr":"","en":"A trainee describes how he measures the obligation of a defined benefit plan for an employee with ten years of service, who will retire in twenty years. Which of his steps is wrong?","es":""},"explanation":{"fr":"","en":"With the projected unit credit method, each period of service gives rise to an additional unit of benefit entitlement, measured separately, with the benefits projected and then discounted (IAS 19, paras. 67 and 68). At the measurement date, the obligation relates to the units of the ten years already rendered, not to the final benefit calculated over thirty years. Trap: An obligation equal to the present value of the total benefit at retirement, whatever the service earned. Rule to remember: The obligation at a given date covers only the units of benefit for services already rendered, projected then discounted (IAS 19, paras. 67 and 68).","es":""},"common_error":{"fr":"","en":"Measuring the obligation by discounting the total benefit at retirement without attributing it to the years of service rendered.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He projects the benefit expected at retirement using the salary and leaving assumptions that the actuary provides in the case.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: benefits are projected before being discounted, from the actuarial assumptions provided by the case (case data). It is not the wrong step (IAS 19, paras. 67 and 68).","es":""}},{"id":"B","text":{"fr":"","en":"He attributes a unit of benefit to each period of service and measures separately the unit that corresponds to the ten years of service already rendered.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the method attributes a unit of benefit to each period of service and measures each unit separately, which isolates the obligation for services rendered. It is not the wrong step (IAS 19, paras. 67 and 68).","es":""}},{"id":"C","text":{"fr":"","en":"He discounts the total benefit expected at retirement, calculated over thirty years of service, and takes that amount as the obligation today.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"He discounts the benefit attributed to services already rendered over the twenty years that separate the employee from retirement, at the rate given in the case.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the benefit attributed to services already rendered is discounted to the settlement date, with the rate provided by the case. It is not the wrong step (IAS 19, paras. 67 and 68).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000025","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PROJECTED_UNIT_CREDIT"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000025","tested_point":"QST.IAS19.000025","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-puc"},"references":["IAS 19 §67"],"exercise":{"prompt":{"fr":"","en":"According to the case actuary's data, an employee of Dalmont SA will receive in {years_to_retirement}, on retirement, a projected lump sum of {projected_benefit} (projected final salary included). Twelve years of service out of thirty have been rendered at the measurement date, that is {attribution_percent} of total service. As a teaching assumption of the case, the benefit is attributed on a straight-line basis to years of service; no leaving or death before retirement is assumed, and the discount rate is {rate} (case data). Calculate the benefit attributed to services rendered, then its present value.","es":""},"explanation":{"fr":"","en":"Method, one unit of benefit at a time: the projected benefit of 150,000 is attributed to services already rendered at 40% (straight-line attribution, a teaching assumption of the case), that is 60,000. That benefit is then discounted over 18 years at 4%: 60,000 ÷ 1.04^18 = 29,617.69. The projected unit credit method measures separately the unit of benefit of each period of service, projected then discounted (IAS 19, paras. 67 and 68). Trap: Discounting the total benefit of 150,000 without relating it to the years of service already rendered. Rule to remember: The obligation at a given date is the present value of the benefit attributed to services already rendered (IAS 19, paras. 67 and 68).","es":""},"common_error":{"fr":"","en":"Discounting the total benefit at retirement without relating it to the years of service already rendered.","es":""},"format":"CALCULATION","placeholders":[{"id":"projected_benefit","value":"150000","unit":"EUR"},{"id":"attribution_percent","value":"40","unit":"PERCENT"},{"id":"rate","value":"4","unit":"PERCENT"},{"id":"years_to_retirement","value":"18","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Projected lump sum at retirement","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Share of total service rendered at the measurement date (12 years out of 30)","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Period until the lump sum is paid","es":""},"value":"18","unit":"YEARS"}],"steps":[{"id":"ATTRIBUTED_BENEFIT","label":{"fr":"","en":"Benefit attributed to services rendered","es":""},"answer":60000,"tolerance":0.01,"unit":"EUR"},{"id":"PRESENT_VALUE","label":{"fr":"","en":"Present value of the attributed benefit","es":""},"answer":29617.69,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"PRESENT_VALUE","meaning":{"fr":"","en":"Present value of the attributed benefit","es":""},"expression":"a / (1 + b)^18","variables":[{"symbol":"a","meaning":{"fr":"","en":"Benefit attributed to services rendered","es":""},"value":60000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":4,"unit":"PERCENT"}],"result":29617.69,"unit":"EUR"}],"rationale":{"fr":"","en":"The obligation at a given date is the present value of the benefit attributed to services already rendered (IAS 19, paras. 67 and 68).","es":""},"references":["REF.IAS19.67"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000026","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ATTRIBUTION_TO_SERVICE"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000026","tested_point":"QST.IAS19.000026","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-attribution"},"references":["IAS 19 §70"],"exercise":{"prompt":{"fr":"","en":"The plan formula of Halvern SA, case data, pays each employee, on retirement, a lump sum of {annual_amount} per year of service completed in the entity. An employee has completed {years_served} at the measurement date and is expected to complete {future_years} more; the lump sum will be paid in {years_to_payment}. As a case assumption, no leaving or death is assumed before payment, and the discount rate is {rate}. Calculate the benefit attributed to services rendered under the plan formula, then its present value.","es":""},"explanation":{"fr":"","en":"Method: under the plan formula, the nine years completed give entitlement to 9 × 2,000 = 18,000; the six years to come are not yet attributed. The benefit is attributed to periods of service in accordance with IAS 19 (para. 70); here, the plan formula is the data that fixes the attribution. Present value: 18,000 ÷ 1.035^14 = 11,120.07. Trap: Discounting the total lump sum of 30,000 (fifteen years) instead of the benefit attributed to the years already rendered. Rule to remember: Only the benefit attributed to services already rendered, under the plan formula, enters the obligation (IAS 19, para. 70).","es":""},"common_error":{"fr":"","en":"Discounting the benefit for the whole expected career instead of the benefit attributed to services already rendered.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_amount","value":"2000","unit":"EUR"},{"id":"years_served","value":"9","unit":"YEARS"},{"id":"future_years","value":"6","unit":"YEARS"},{"id":"years_to_payment","value":"14","unit":"YEARS"},{"id":"rate","value":"3.5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Lump sum per year of service (plan formula)","es":""},"value":"2000","unit":"EUR"},{"label":{"fr":"","en":"Years of service completed at the measurement date","es":""},"value":"9","unit":"YEARS"},{"label":{"fr":"","en":"Years of service still expected","es":""},"value":"6","unit":"YEARS"},{"label":{"fr":"","en":"Period until the lump sum is paid","es":""},"value":"14","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate (case data)","es":""},"value":"3.5","unit":"PERCENT"}],"steps":[{"id":"ATTRIBUTED_BENEFIT","label":{"fr":"","en":"Benefit attributed to services rendered","es":""},"answer":18000,"tolerance":0.01,"unit":"EUR"},{"id":"PRESENT_VALUE","label":{"fr":"","en":"Present value of the attributed benefit","es":""},"answer":11120.07,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"ATTRIBUTED_BENEFIT","meaning":{"fr":"","en":"Benefit attributed to services rendered","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Years of service completed at the measurement date","es":""},"value":9,"unit":"YEARS"},{"symbol":"b","meaning":{"fr":"","en":"Lump sum per year of service (plan formula)","es":""},"value":2000,"unit":"EUR"}],"result":18000,"unit":"EUR"},{"step":"PRESENT_VALUE","meaning":{"fr":"","en":"Present value of the attributed benefit","es":""},"expression":"a / (1 + b)^14","variables":[{"symbol":"a","meaning":{"fr":"","en":"Benefit attributed to services rendered","es":""},"value":18000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":11120.07,"unit":"EUR"}],"rationale":{"fr":"","en":"Only the benefit attributed to services already rendered, under the plan formula, enters the obligation (IAS 19, para. 70).","es":""},"references":["REF.IAS19.70"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000027","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ATTRIBUTION_TO_SERVICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000027","tested_point":"QST.IAS19.000027","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000006","section_id":"rule-attribution"},"references":["IAS 19 §70"],"exercise":{"prompt":{"fr":"","en":"To measure its obligation, Sorane SA attributes the plan benefit to periods of service by a simple pro rata of years, without reading the plan formula: this approach complies with IAS 19 (para. 70).","es":""},"explanation":{"fr":"","en":"The benefit is attributed to periods of service in accordance with IAS 19 (para. 70), which requires reading the plan formula (IAS 19, para. 70). A pro rata of years may appear as an assumption of a case, but it does not apply without examining the formula. Trap: Attributing the benefit on a straight-line basis over the service period without examining the plan formula. Rule to remember: Attribution to periods of service is based on the plan formula, not on an automatic pro rata (IAS 19, para. 70).","es":""},"common_error":{"fr":"","en":"Attributing the benefit on a straight-line basis over the service period without examining the plan formula.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000028","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ACTUARIAL_ASSUMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000028","tested_point":"QST.IAS19.000028","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assumptions"},"references":["IAS 19 §76"],"exercise":{"prompt":{"fr":"","en":"The mortality of plan members is a financial actuarial assumption, just like the discount rate.","es":""},"explanation":{"fr":"","en":"Actuarial assumptions fall into demographic assumptions (employee turnover, mortality, disability) and financial assumptions (discount rate, salary growth); their numerical value is data provided by the actuary in each case (IAS 19, para. 76). Trap: Classifying mortality among the financial assumptions. Rule to remember: Mortality, turnover, disability: demographic; discount rate, salaries: financial (IAS 19, para. 76).","es":""},"common_error":{"fr":"","en":"Confusing demographic and financial assumptions, for example classifying mortality among the financial assumptions.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000029","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ACTUARIAL_ASSUMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000029","tested_point":"QST.IAS19.000029","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assumptions"},"references":["IAS 19 §76"],"exercise":{"prompt":{"fr":"","en":"Which assumptions are financial actuarial assumptions for the measurement of a defined benefit plan? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Financial actuarial assumptions include the discount rate and salary growth; demographic assumptions include employee turnover, mortality and disability (IAS 19, para. 76). The discount rate and salary growth are therefore financial; mortality, turnover and disability, demographic. Trap: Confusing demographic and financial assumptions. Rule to remember: Financial: discount rate, salaries; demographic: mortality, turnover, disability (IAS 19, para. 76).","es":""},"common_error":{"fr":"","en":"Classifying mortality, turnover or disability among the financial assumptions.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The discount rate of the obligation, selected by the entity at the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The mortality rate of members before and after retirement.","es":""},"correct":false,"feedback":{"fr":"","en":"The mortality rate describes the plan members (lifespan before and after retirement), not amounts or market rates: it is a demographic assumption, not a financial one (IAS 19, para. 76).","es":""}},{"id":"C","text":{"fr":"","en":"The disability rate of active members.","es":""},"correct":false,"feedback":{"fr":"","en":"Disability describes the health of members still in service, that is people: it is a demographic assumption, like mortality and employee turnover, not a financial one (IAS 19, para. 76).","es":""}},{"id":"D","text":{"fr":"","en":"The employee turnover rate before retirement.","es":""},"correct":false,"feedback":{"fr":"","en":"Employee turnover concerns employees leaving before retirement, that is people rather than amounts or market rates: it is a demographic assumption (IAS 19, para. 76).","es":""}},{"id":"E","text":{"fr":"","en":"The future growth of the salaries on which the benefits are based.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000030","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.DISCOUNT_RATE"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000030","tested_point":"QST.IAS19.000030","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-discount"},"references":["IAS 19 §83"],"exercise":{"prompt":{"fr":"","en":"The plan of Ismar SA must pay {amount} in {years} to a cohort of members (benefit attributed to services rendered, case data). The entity has selected a discount rate of {rate_initial}, based on the market yield on high-quality corporate bonds at the reporting date (case data). An analyst simulates a rate of {rate_new}. Calculate the present value at the initial rate, at the new rate, then the decrease in the cohort's obligation.","es":""},"explanation":{"fr":"","en":"Method, one flow at a time: 840,000 ÷ 1.035^10 = 595,491.80 at the initial rate; 840,000 ÷ 1.045^10 = 540,899.25 at the new rate; decrease = 595,491.80 − 540,899.25 = 54,592.55. A higher discount rate reduces the present value of the obligation. The rate is determined by reference to market yields, at the reporting date, on high-quality corporate bonds (IAS 19, para. 83); both rates in the case are case data, not imposed rates. Trap: Thinking that a higher rate increases the present value of the obligation. Rule to remember: The higher the discount rate, the lower the present value of the obligation (IAS 19, para. 83).","es":""},"common_error":{"fr":"","en":"Using a simulation rate that does not reflect the market yield on high-quality bonds, or reversing the direction of the change.","es":""},"format":"CALCULATION","placeholders":[{"id":"amount","value":"840000","unit":"EUR"},{"id":"years","value":"10","unit":"YEARS"},{"id":"rate_initial","value":"3.5","unit":"PERCENT"},{"id":"rate_new","value":"4.5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Amount to be paid to the cohort","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Period until payment","es":""},"value":"10","unit":"YEARS"},{"label":{"fr":"","en":"Initial discount rate (case data)","es":""},"value":"3.5","unit":"PERCENT"},{"label":{"fr":"","en":"Rate simulated by the analyst (case data)","es":""},"value":"4.5","unit":"PERCENT"}],"steps":[{"id":"PV_INITIAL","label":{"fr":"","en":"Present value at the initial rate","es":""},"answer":595491.8,"tolerance":0.01,"unit":"EUR"},{"id":"PV_NEW","label":{"fr":"","en":"Present value at the new rate","es":""},"answer":540899.25,"tolerance":0.01,"unit":"EUR"},{"id":"DECREASE","label":{"fr":"","en":"Decrease in the cohort's obligation","es":""},"answer":54592.55,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"PV_INITIAL","meaning":{"fr":"","en":"Present value at the initial rate","es":""},"expression":"a / (1 + b)^10","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount to be paid to the cohort","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Initial discount rate (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":595491.8,"unit":"EUR"},{"step":"PV_NEW","meaning":{"fr":"","en":"Present value at the new rate","es":""},"expression":"a / (1 + b)^10","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount to be paid to the cohort","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate simulated by the analyst (case data)","es":""},"value":4.5,"unit":"PERCENT"}],"result":540899.25,"unit":"EUR"},{"step":"DECREASE","meaning":{"fr":"","en":"Decrease in the cohort's obligation","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value at the initial rate","es":""},"value":595491.8,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Present value at the new rate","es":""},"value":540899.25,"unit":"EUR"}],"result":54592.55,"unit":"EUR"}],"rationale":{"fr":"","en":"The higher the discount rate, the lower the present value of the obligation (IAS 19, para. 83).","es":""},"references":["REF.IAS19.83"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000031","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.DISCOUNT_RATE"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000031","tested_point":"QST.IAS19.000031","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-discount"},"references":["IAS 19 §83"],"exercise":{"prompt":{"fr":"","en":"A trainee justifies the discount rate selected for the obligation of a defined benefit plan of Mirel SA at the reporting date. Which of his justifications is wrong?","es":""},"explanation":{"fr":"","en":"The discount rate for post-employment obligations is determined by reference to market yields, at the end of the reporting period, on high-quality corporate bonds (IAS 19, para. 83). The expected return on the fund's investments is not a reference. The notion of \"high quality\" reflects an absolute concept of credit quality according to the Committee's 2013 explanation (an explanation, not a standard); the rate selected in each case is case data. Trap: Choosing the discount rate from the expected return on plan assets or the entity's borrowing cost. Rule to remember: Discount rate = market yields at the reporting date on high-quality corporate bonds (IAS 19, para. 83).","es":""},"common_error":{"fr":"","en":"Using the expected return on plan assets or the entity's borrowing cost for the obligation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"I use the expected return on the fund's investments, that is 6%, because those investments will fund the benefits.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"I use market yields, at the reporting date, on high-quality corporate bonds, and not a rate specific to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"This justification is correct: the rate is determined by reference to market yields, at the end of the reporting period, on high-quality corporate bonds. It is not the wrong justification (IAS 19, para. 83).","es":""}},{"id":"C","text":{"fr":"","en":"I do not take the entity's borrowing cost as the reference for the rate of the pension obligation at the year end.","es":""},"correct":false,"feedback":{"fr":"","en":"This justification is correct: the rate does not depend on the entity's borrowing cost but on market yields on high-quality corporate bonds. It is not the wrong justification (IAS 19, para. 83).","es":""}},{"id":"D","text":{"fr":"","en":"I assess high quality by an absolute concept of credit quality (2013 explanation by the Interpretations Committee, which is not a standard), not relative to other issuers.","es":""},"correct":false,"feedback":{"fr":"","en":"This justification is correct: the Interpretations Committee recalled in 2013 that \"high quality\" reflects an absolute concept of credit quality. This is an explanation, not a standard, but it does not make the justification wrong (IAS 19, para. 83).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000033","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PLAN_ASSETS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000033","tested_point":"QST.IAS19.000033","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assets"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"Securities that the employer holds directly, and that its creditors can seize in bankruptcy, are not plan assets, even if the employer has internally earmarked them to fund pensions.","es":""},"explanation":{"fr":"","en":"Plan assets include assets held by a long-term employee benefit fund, that is a legally separate entity that exists only to pay benefits, beyond the reach of the employer's creditors and with limited return to the employer; they also include qualifying insurance policies (IAS 19, para. 8). Securities held directly by the employer and seizable by its creditors do not meet these conditions. Trap: Deducting from the obligation investments of the entity that are not held in a separate fund. Rule to remember: A plan asset is held by a separate fund, beyond the reach of the employer's creditors (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Deducting from the obligation investments of the entity that are not held by a legally separate fund.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000034","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.PLAN_ASSETS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000034","tested_point":"QST.IAS19.000034","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assets"},"references":["IAS 19 §8"],"exercise":{"prompt":{"fr":"","en":"Ormel SA funds its pensions in two ways. A legally separate fund, which exists only to pay employee benefits, whose assets are beyond the reach of the entity's creditors and return to the employer only under limited conditions, holds 9,400,000 of investments. In addition, the entity directly holds 2,100,000 of securities that it has earmarked as an internal reserve for pensions, with no separate fund (case facts). What amount is deducted from the obligation as plan assets?","es":""},"explanation":{"fr":"","en":"Plan assets include assets held by a long-term employee benefit fund, a legally separate entity that exists only to pay benefits, beyond the reach of the employer's creditors and with limited return to the employer (IAS 19, para. 8). Only the 9,400,000 of the separate fund meet these conditions; the 2,100,000 of securities held directly are not plan assets. Trap: Deducting from the obligation assets held by the entity itself, accessible to its creditors. Rule to remember: Only the assets of a separate fund, beyond the reach of the employer's creditors, are deducted from the obligation (IAS 19, para. 8).","es":""},"common_error":{"fr":"","en":"Deducting from the obligation assets held by the entity itself, accessible to its creditors.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"9,400,000: only the investments of the legally separate fund meet the definition of plan assets.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"11,500,000: all the investments the entity has allocated to pensions, whether in a fund or not, are plan assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: an internal allocation does not make an investment a plan asset. The 2,100,000 of securities held directly, with no separate fund or protection from creditors, remain assets of the entity (IAS 19, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"2,100,000: securities held directly by the entity are easier to realise than a fund's investments, so they are preferable.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: ease of realisation does not determine plan assets. Securities held directly can be seized by the entity's creditors; it is the investments of the separate fund that meet the definition (IAS 19, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"Zero: plan assets are deducted from the obligation on the date when benefits are actually paid to retirees, not before.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: plan assets are deducted from the obligation at each reporting date, at fair value, as soon as they meet the definition; one does not wait for benefits to be paid (IAS 19, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000035","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000035","tested_point":"QST.IAS19.000035","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-ceiling"},"references":["IAS 19 §64","IAS 19"],"exercise":{"prompt":{"fr":"","en":"At 31 December, the plan of Pelvane SA shows an obligation of {dbo} (present value) and plan assets with a fair value of {assets}. The present value of the economic benefits available as reductions in future contributions, discounted at the plan's discount rate, is {ceiling}; Pelvane has an unconditional right to realise them (case data). Calculate the plan surplus, the net asset to recognise and the effect of the asset ceiling.","es":""},"explanation":{"fr":"","en":"Method: surplus = fair value of assets 12,400,000 − obligation 10,900,000 = 1,500,000. The net asset is measured at the lower of the surplus and the asset ceiling (IAS 19, para. 64): the lower of 1,500,000 and 1,000,000 is 1,000,000. The effect of the ceiling is 1,500,000 − 1,000,000 = 500,000, recognised in other comprehensive income. The ceiling is the present value of the benefits available, assessed under the plan terms and the applicable law, not on an intention (IFRIC 14, paras. 7 and 9). Trap: Recognising the whole surplus without limiting it to the ceiling, or charging the effect of the ceiling to profit or loss. Rule to remember: Net asset = lower of the surplus and the ceiling; the effect of the ceiling goes to other comprehensive income (IAS 19, para. 64).","es":""},"common_error":{"fr":"","en":"Recognising the whole surplus without comparing it to the ceiling, or taking the effect of the ceiling to profit or loss.","es":""},"format":"CALCULATION","placeholders":[{"id":"dbo","value":"10900000","unit":"EUR"},{"id":"assets","value":"12400000","unit":"EUR"},{"id":"ceiling","value":"1000000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Present value of the obligation","es":""},"value":"10900000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of plan assets","es":""},"value":"12400000","unit":"EUR"},{"label":{"fr":"","en":"Asset ceiling (present value of the economic benefits available)","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"SURPLUS","label":{"fr":"","en":"Plan surplus","es":""},"answer":1500000,"tolerance":0,"unit":"EUR"},{"id":"ASSET_RECOGNISED","label":{"fr":"","en":"Net asset to recognise","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"},{"id":"CEILING_EFFECT","label":{"fr":"","en":"Effect of the asset ceiling","es":""},"answer":500000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SURPLUS","meaning":{"fr":"","en":"Plan surplus","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of plan assets","es":""},"value":12400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Present value of the obligation","es":""},"value":10900000,"unit":"EUR"}],"result":1500000,"unit":"EUR"},{"step":"CEILING_EFFECT","meaning":{"fr":"","en":"Effect of the asset ceiling","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Plan surplus","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Asset ceiling (present value of the economic benefits available)","es":""},"value":1000000,"unit":"EUR"}],"result":500000,"unit":"EUR"}],"rationale":{"fr":"","en":"Net asset = lower of the surplus and the ceiling; the effect of the ceiling goes to other comprehensive income (IAS 19, para. 64).","es":""},"references":["REF.IAS19.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000037","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000037","tested_point":"QST.IAS19.000037","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-ceiling"},"references":["IAS 19 §64","IAS 19"],"exercise":{"prompt":{"fr":"","en":"The plan of Belmar SA shows a surplus of 800,000. The plan rules give Belmar an unconditional right to obtain a refund of the surplus when the plan is settled, although that refund cannot be realised today. Management states that it has no intention of recovering the surplus (case facts). Which conclusion on the asset ceiling is correct?","es":""},"explanation":{"fr":"","en":"A net defined benefit asset is measured at the lower of the surplus and the asset ceiling, the present value of the economic benefits available as refunds or reductions in future contributions, discounted at the rate in paragraph 83 (IAS 19, para. 64). Under IFRIC 14, these benefits are available if the entity has an unconditional right to realise them during the life of the plan or on its settlement, even if they are not immediately realisable; the entity's intentions are ignored (IFRIC 14, paras. 8, 9 and 11). Assessing availability is a professional judgement. Trap: Basing the availability of the benefit on management's intention rather than on the unconditional right. Rule to remember: The availability of the benefit depends on the unconditional right to realise it, not on the entity's intentions (IAS 19, para. 64).","es":""},"common_error":{"fr":"","en":"Basing the availability of the benefit on management's intention rather than on the unconditional right to realise it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The asset ceiling is nil, because management does not intend to recover the surplus, so the net asset recognised must be reduced to zero.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the availability of the benefit rests on the unconditional right to realise it, not on management's intentions, which are ignored. Belmar has that right on settlement of the plan: the benefit is available (IFRIC 14, paras. 9 and 11).","es":""}},{"id":"B","text":{"fr":"","en":"The asset ceiling is nil as long as the refund cannot be realised immediately: a right exercisable on settlement of the plan, and not before, does not count towards the asset ceiling.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a benefit can be available even if it is not immediately realisable, provided the entity has an unconditional right to realise it during the life of the plan or on its settlement (IFRIC 14, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"The refund is an available economic benefit, because Belmar has an unconditional right to realise it when the plan is settled; management's intention has no effect.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The asset ceiling adds the refund on settlement of the plan to the reductions in contributions until that settlement, each measured in full.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: refunding the whole surplus on settlement and also using it to reduce contributions until then are mutually exclusive assumptions; the entity takes the maximum benefit without combining them (IFRIC 14, para. 9), and the net asset remains limited to the lower of the surplus and the ceiling (IAS 19, para. 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000038","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000038","tested_point":"QST.IAS19.000038","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-ceiling"},"references":["IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"A trainee summarises the treatment of the asset ceiling for a defined benefit plan in surplus. Which of his sentences is wrong?","es":""},"explanation":{"fr":"","en":"A net defined benefit asset is measured at the lower of the plan surplus and the asset ceiling, the latter being the present value of the economic benefits available as refunds or reductions in future contributions, discounted at the rate in paragraph 83 (IAS 19, para. 64). The wrong sentence makes the ceiling optional, depending on management's intention. Trap: Recognising the whole surplus without limiting it to the ceiling. Rule to remember: The net asset is always limited to the lower of the surplus and the ceiling (IAS 19, para. 64).","es":""},"common_error":{"fr":"","en":"Recognising the whole plan surplus without comparing it to the asset ceiling.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The asset ceiling is the present value of the economic benefits available as refunds from the plan or reductions in future contributions.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the asset ceiling is the present value of the benefits available as refunds or reductions in future contributions. It is not the wrong sentence (IAS 19, para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"The net asset recognised is the whole plan surplus; the asset ceiling applies only if management decides not to recover the surplus.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The net defined benefit asset is measured at the lower of the plan surplus and the asset ceiling.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the net asset is measured at the lower of the plan surplus and the asset ceiling, which limits the asset recognised. It is not the wrong sentence (IAS 19, para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"The present value of the economic benefits that form the ceiling is calculated using the discount rate of the obligation in paragraph 83.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the present value of the benefits that form the ceiling is discounted at the discount rate in paragraph 83, like the obligation. It is not the wrong sentence (IAS 19, para. 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000039","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.MINIMUM_FUNDING_IFRIC14","IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000039","tested_point":"QST.IAS19.000039","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-ceiling"},"references":["IAS 19","IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"The plan of Corlan SA is in surplus by {surplus}. Corlan has an unconditional right to a refund whose present value is {refund_pv}. For future services, the present value of future service costs under IAS 19 is {pv_service_cost} and that of the minimum funding contributions required for those same future services is {pv_min_funding}. Additional contributions of {catch_up} (present value) cover an existing minimum funding shortfall in respect of services already rendered; once paid, they will remain available to Corlan as a refund (case data). Calculate the excess of the minimum funding contributions for future services over the future service cost, the benefit available as a reduction in future contributions (floor at zero) and the net asset to recognise.","es":""},"explanation":{"fr":"","en":"Method: excess of the minimum funding contributions for future services over the future service cost = 650,000 − 600,000 = 50,000. It reduces the benefit available as a reduction in future contributions: 600,000 − 650,000 = −50,000, brought to zero because the benefit cannot be below zero. The catch-up contributions of 120,000 cover services already rendered and do not enter this calculation; as they remain available once paid, they create no additional liability (IFRIC 14, paras. 19 and 24). Ceiling = refund 300,000 + reduction 0 = 300,000; net asset = the lower of the surplus 800,000 and the ceiling 300,000 = 300,000 (IAS 19, para. 64; IFRIC 14, paras. 20 to 22). Trap: Reducing the available benefit by contributions that cover an existing shortfall for services already rendered. Rule to remember: Only the excess of the minimum contributions for future services over the future service cost reduces the benefit, which cannot fall below zero (IAS 19, para. 64).","es":""},"common_error":{"fr":"","en":"Deducting from the available benefit the contributions that cover an existing shortfall, or letting the benefit become negative.","es":""},"format":"CALCULATION","placeholders":[{"id":"surplus","value":"800000","unit":"EUR"},{"id":"refund_pv","value":"300000","unit":"EUR"},{"id":"pv_service_cost","value":"600000","unit":"EUR"},{"id":"pv_min_funding","value":"650000","unit":"EUR"},{"id":"catch_up","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Plan surplus","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Present value of the refund the entity is entitled to","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Present value of future service costs (IAS 19)","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Present value of minimum funding contributions for future services","es":""},"value":"650000","unit":"EUR"},{"label":{"fr":"","en":"Contributions covering an existing shortfall (services already rendered)","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"EXCESS","label":{"fr":"","en":"Excess of minimum contributions over the future service cost","es":""},"answer":50000,"tolerance":0,"unit":"EUR"},{"id":"REDUCTION","label":{"fr":"","en":"Benefit available as a reduction in future contributions","es":""},"answer":0,"tolerance":0,"unit":"EUR"},{"id":"ASSET_RECOGNISED","label":{"fr":"","en":"Net asset to recognise","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXCESS","meaning":{"fr":"","en":"Excess of minimum contributions over the future service cost","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of minimum funding contributions for future services","es":""},"value":650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Present value of future service costs (IAS 19)","es":""},"value":600000,"unit":"EUR"}],"result":50000,"unit":"EUR"},{"step":"ASSET_RECOGNISED","meaning":{"fr":"","en":"Net asset to recognise","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the refund the entity is entitled to","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Benefit available as a reduction in future contributions","es":""},"value":0,"unit":"EUR"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"Only the excess of the minimum contributions for future services over the future service cost reduces the benefit, which cannot fall below zero (IAS 19, para. 64).","es":""},"references":["REF.IAS19.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000040","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.MINIMUM_FUNDING_IFRIC14","IAS19.DEFINED_BENEFIT.ASSET_CEILING"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000040","tested_point":"QST.IAS19.000040","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-ceiling"},"references":["IAS 19","IAS 19 §64"],"exercise":{"prompt":{"fr":"","en":"The plan of Devane SA is subject to a minimum funding requirement of 150,000 per year: 90,000 for future services, and 60,000 to clear an existing minimum funding shortfall in respect of services already rendered. The annual future service cost under IAS 19 is 100,000 (case data). Which conclusion on the benefit available as a reduction in future contributions is correct?","es":""},"explanation":{"fr":"","en":"Minimum funding contributions required for future services that exceed, for a period, the future service cost under IAS 19 reduce the economic benefit available as a reduction in future contributions, which cannot fall below zero; contributions covering an existing shortfall for services already rendered do not affect future contributions for future services (IFRIC 14, paras. 19 and 22; IAS 19, para. 64). Here, 90,000 is below 100,000: no excess; the 60,000 catch-up is excluded. Trap: Reducing the available benefit by contributions that cover an existing shortfall for services already rendered. Rule to remember: Only the excess of the minimum contributions for future services over the future service cost reduces the available benefit (IAS 19, para. 64).","es":""},"common_error":{"fr":"","en":"Reducing the available benefit by the catch-up contributions for an existing shortfall, or by all the contributions required.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The available benefit is reduced each year by 60,000, the amount of the contributions that clear the existing minimum funding shortfall in respect of services already rendered by employees.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the catch-up contributions cover an existing shortfall in respect of services already rendered; they do not affect future contributions for future services and therefore do not reduce the benefit available as a reduction in contributions (IFRIC 14, paras. 19 and 22; IAS 19, para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"The available benefit is reduced each year by 150,000, all the minimum funding contributions required by the plan.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: not all required contributions reduce the benefit. Only the part of the contributions for future services that exceeds the future service cost does so; here, 90,000 is below 100,000 and the 60,000 relates to past services (IFRIC 14, paras. 19 and 22; IAS 19, para. 64).","es":""}},{"id":"C","text":{"fr":"","en":"The available benefit is reduced each year by 10,000, the difference between the future service cost (100,000) and the contributions required for those services (90,000).","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the difference of 10,000 runs the other way. The contributions for future services are below the future service cost: there is no excess that would reduce the benefit, which therefore remains for that difference (IFRIC 14, paras. 19 and 22; IAS 19, para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"The contributions for future services (90,000) do not exceed the future service cost (100,000): they do not reduce the benefit; the 60,000 catch-up does not affect it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000041","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.EMPLOYEE_CONTRIBUTIONS"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000041","tested_point":"QST.IAS19.000041","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000008","section_id":"rule-employee-contributions"},"references":["IAS 19 §93"],"exercise":{"prompt":{"fr":"","en":"In the defined benefit plan of Fauvel SA, members make contributions. The gross service cost for the year is {gross_service_cost}. Member contributions amount to {flat_contrib}; they are calculated as a percentage of salary, independently of the number of years of service, and Fauvel elects to recognise them as a reduction of the service cost of the period. Other member contributions, of {service_linked}, increase with the number of years of service; the gross service cost already takes them into account (case data). Calculate the net service cost for the year (case data).","es":""},"explanation":{"fr":"","en":"Method: net service cost = 3,150,000 − 210,000 = 2,940,000. Contributions independent of the number of years of service may be recognised as a reduction of the service cost of the period in which the service is rendered; Fauvel elects that option. The 85,000 of contributions that depend on seniority are not treated that way: they are attributed to periods of service using the method applied to the gross benefit, and the gross service cost of 3,150,000 already takes them into account (case data); they are therefore not deducted a second time (IAS 19, para. 93). Trap: Treating as a reduction of the period's service cost contributions that depend on the number of years of service. Rule to remember: Only contributions independent of seniority can reduce the service cost of the period (IAS 19, para. 93).","es":""},"common_error":{"fr":"","en":"Taking as a reduction of the period's service cost member contributions that depend on the number of years of service.","es":""},"format":"CALCULATION","placeholders":[{"id":"gross_service_cost","value":"3150000","unit":"EUR"},{"id":"flat_contrib","value":"210000","unit":"EUR"},{"id":"service_linked","value":"85000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Gross service cost for the year","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Member contributions independent of the number of years of service","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Member contributions that increase with years of service","es":""},"value":"85000","unit":"EUR"}],"steps":[{"id":"NET_SERVICE_COST","label":{"fr":"","en":"Net service cost for the year","es":""},"answer":2940000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_SERVICE_COST","meaning":{"fr":"","en":"Net service cost for the year","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Gross service cost for the year","es":""},"value":3150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Member contributions independent of the number of years of service","es":""},"value":210000,"unit":"EUR"}],"result":2940000,"unit":"EUR"}],"rationale":{"fr":"","en":"Only contributions independent of seniority can reduce the service cost of the period (IAS 19, para. 93).","es":""},"references":["REF.IAS19.93"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000043","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000043","tested_point":"QST.IAS19.000043","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-components"},"references":["IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"The three components of defined benefit cost for a year (service cost, net interest and remeasurements) are recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Defined benefit cost has three components: service cost and net interest on the net defined benefit liability (asset), recognised in profit or loss, and remeasurements of the net defined benefit liability (asset), recognised in other comprehensive income, unless another standard requires or permits their inclusion in the cost of an asset (IAS 19, para. 120). Trap: Taking remeasurements to profit or loss. Rule to remember: Service cost and net interest in profit or loss; remeasurements in other comprehensive income (IAS 19, para. 120).","es":""},"common_error":{"fr":"","en":"Taking remeasurements to profit or loss, or net interest to other comprehensive income.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000044","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.COMPONENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000044","tested_point":"QST.IAS19.000044","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-components"},"references":["IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"For the year, the defined benefit plan of Aubrac SA shows a service cost of {service_cost}, net interest of {net_interest}, an actuarial loss on the obligation of {actuarial_loss} and a return on plan assets exceeding by {excess_return} the interest income included in net interest. No plan event occurred. Calculate the cost to recognise in profit or loss and the net remeasurement loss to recognise in other comprehensive income.","es":""},"explanation":{"fr":"","en":"Method: profit or loss = service cost 1,860,000 + net interest 142,000 = 2,002,000. Other comprehensive income = actuarial loss 410,000 − return on assets above interest 120,000 = net loss of 290,000. Service cost and net interest go to profit or loss, remeasurements to other comprehensive income (IAS 19, para. 120). Trap: Taking the actuarial loss to staff costs with the service cost. Rule to remember: Profit or loss: service + net interest; other comprehensive income: remeasurements (IAS 19, para. 120).","es":""},"common_error":{"fr":"","en":"Recognising actuarial gains and losses in staff costs, or counting remeasurements in the profit or loss cost.","es":""},"format":"CALCULATION","placeholders":[{"id":"service_cost","value":"1860000","unit":"EUR"},{"id":"net_interest","value":"142000","unit":"EUR"},{"id":"actuarial_loss","value":"410000","unit":"EUR"},{"id":"excess_return","value":"120000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Service cost for the year","es":""},"value":"1860000","unit":"EUR"},{"label":{"fr":"","en":"Net interest for the year","es":""},"value":"142000","unit":"EUR"},{"label":{"fr":"","en":"Actuarial loss on the obligation","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Return on assets above interest income","es":""},"value":"120000","unit":"EUR"}],"steps":[{"id":"PROFIT_OR_LOSS","label":{"fr":"","en":"Cost recognised in profit or loss","es":""},"answer":2002000,"tolerance":0,"unit":"EUR"},{"id":"OCI","label":{"fr":"","en":"Net remeasurement loss in other comprehensive income","es":""},"answer":290000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PROFIT_OR_LOSS","meaning":{"fr":"","en":"Cost recognised in profit or loss","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Service cost for the year","es":""},"value":1860000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Net interest for the year","es":""},"value":142000,"unit":"EUR"}],"result":2002000,"unit":"EUR"}],"rationale":{"fr":"","en":"Profit or loss: service + net interest; other comprehensive income: remeasurements (IAS 19, para. 120).","es":""},"references":["REF.IAS19.120"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000045","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.COMPONENTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000045","tested_point":"QST.IAS19.000045","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-components"},"references":["IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"A trainee presents the accounting for the components of defined benefit cost for a year. Which of the trainee's sentences is wrong?","es":""},"explanation":{"fr":"","en":"Defined benefit cost comprises service cost and net interest on the net defined benefit liability (asset), recognised in profit or loss, and remeasurements of the net liability (asset), including actuarial gains and losses, recognised in other comprehensive income (IAS 19, para. 120). The wrong sentence places actuarial gains and losses in staff costs. Trap: Taking remeasurements to profit or loss. Rule to remember: Actuarial gains and losses are remeasurements: other comprehensive income, not profit or loss (IAS 19, para. 120).","es":""},"common_error":{"fr":"","en":"Taking actuarial gains and losses to profit or loss instead of other comprehensive income.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The year's service cost is recognised in profit or loss, unless another standard requires its inclusion in the cost of an asset.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: service cost is a component of cost recognised in profit or loss, unless another standard requires or permits its inclusion in the cost of an asset. It is not the wrong sentence (IAS 19, para. 120).","es":""}},{"id":"B","text":{"fr":"","en":"The year's actuarial gains and losses are taken to staff costs in profit or loss, together with the service cost of the period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Net interest on the net defined benefit liability (asset) is recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: net interest on the net liability (asset) is, with service cost, the second component recognised in profit or loss. It is not the wrong sentence (IAS 19, para. 120).","es":""}},{"id":"D","text":{"fr":"","en":"Remeasurements of the net defined benefit liability (asset) are recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: remeasurements of the net liability (asset), including actuarial gains and losses, are recognised in other comprehensive income. It is not the wrong sentence (IAS 19, para. 120).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000046","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.CURRENT_SERVICE_COST"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000046","tested_point":"QST.IAS19.000046","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-service-cost"},"references":["IAS 19 §122A"],"exercise":{"prompt":{"fr":"","en":"For year N, the actuary of Hauvel SA attributes to services rendered during the year a benefit of {benefit}, payable in {years} to plan members (case data). The discount rate set at the start of the year was {rate_open}; the rate at the reporting date is {rate_close}. No plan amendment, curtailment or settlement occurred during the year. Calculate the service cost for the year.","es":""},"explanation":{"fr":"","en":"Method: the service cost of the period is determined using the actuarial assumptions set at the start of the annual reporting period, where there is no plan event (IAS 19, para. 122A). The benefit is therefore discounted at the opening rate: 1,600,000 ÷ 1.032^15 = 997,526.69. The closing rate of 3.9% is used to measure the closing obligation, not the service cost for the year. Trap: Calculating the service cost with the end-of-period rate instead of the start-of-period rate (901,336.11). Rule to remember: Service cost of the period = attributed benefit discounted using start-of-period assumptions (IAS 19, para. 122A).","es":""},"common_error":{"fr":"","en":"Calculating the service cost with the end-of-period rate instead of the start-of-period assumptions.","es":""},"format":"CALCULATION","placeholders":[{"id":"benefit","value":"1600000","unit":"EUR"},{"id":"rate_open","value":"3.2","unit":"PERCENT"},{"id":"rate_close","value":"3.9","unit":"PERCENT"},{"id":"years","value":"15","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Benefit attributed to services rendered during the year","es":""},"value":"1600000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":"3.2","unit":"PERCENT"},{"label":{"fr":"","en":"Discount rate at the reporting date (case data)","es":""},"value":"3.9","unit":"PERCENT"},{"label":{"fr":"","en":"Period until payment","es":""},"value":"15","unit":"YEARS"}],"steps":[{"id":"CURRENT_SERVICE_COST","label":{"fr":"","en":"Service cost for the year","es":""},"answer":997526.69,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"CURRENT_SERVICE_COST","meaning":{"fr":"","en":"Service cost for the year","es":""},"expression":"a / (1 + b)^15","variables":[{"symbol":"a","meaning":{"fr":"","en":"Benefit attributed to services rendered during the year","es":""},"value":1600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":3.2,"unit":"PERCENT"}],"result":997526.69,"unit":"EUR"}],"rationale":{"fr":"","en":"Service cost of the period = attributed benefit discounted using start-of-period assumptions (IAS 19, para. 122A).","es":""},"references":["REF.IAS19.122A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000047","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.CURRENT_SERVICE_COST"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000047","tested_point":"QST.IAS19.000047","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-service-cost"},"references":["IAS 19 §122A"],"exercise":{"prompt":{"fr":"","en":"Rilmar SA closes its books on 31 December. No amendment, curtailment or settlement of its defined benefit plan occurred during year N. To calculate the service cost for year N, which actuarial assumptions should be used?","es":""},"explanation":{"fr":"","en":"The current service cost of the period is determined using the actuarial assumptions set at the start of the annual reporting period, unless there is a remeasurement following an amendment, curtailment or settlement, after which the assumptions of the remeasurement are used for the rest of the period (IAS 19, para. 122A). As Rilmar had no plan event, the assumptions of 1 January N apply. Trap: Calculating the service cost with end-of-period assumptions instead of start-of-period assumptions. Rule to remember: Without a plan event, the year's service cost uses the assumptions at the start of the annual period (IAS 19, para. 122A).","es":""},"common_error":{"fr":"","en":"Using end-of-period assumptions to calculate the year's service cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Those at 31 December N, more recent and therefore more reliable than those at the start of the year, to measure the service cost of the whole year just ended.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the closing assumptions are used to measure the closing obligation. The year's service cost is still determined with those at the start of the annual period, where there is no plan event (IAS 19, para. 122A).","es":""}},{"id":"B","text":{"fr":"","en":"The arithmetic average of the opening and closing assumptions of the year, which spreads the effect of the changes over the whole year.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the standard does not provide for an average of the opening and closing assumptions. The year's service cost is calculated with the assumptions set at the start of the annual period (IAS 19, para. 122A).","es":""}},{"id":"C","text":{"fr":"","en":"Those at the date of each payroll, updated every month, in order to track the service cost more precisely.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a monthly update of the assumptions is not the intended approach. Absent a plan event, the assumptions at the start of the annual period are used for the whole year (IAS 19, para. 122A).","es":""}},{"id":"D","text":{"fr":"","en":"Those set at the start of the annual period, on 1 January N, as no plan event occurred.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000048","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000048","tested_point":"QST.IAS19.000048","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-net-interest"},"references":["IAS 19 §123","IAS 19 §123A"],"exercise":{"prompt":{"fr":"","en":"At the start of the year, the defined benefit plan of Brenac SA shows an obligation of {dbo_open} and plan assets with a fair value of {assets_open}. The discount rate set at the start of the year is {rate} (case data). No contribution or benefit is paid during the year. Calculate the interest on the obligation, the interest income on plan assets (at the same rate) and net interest.","es":""},"explanation":{"fr":"","en":"Method: interest on the obligation = 9,200,000 × 3.5% = 322,000; interest income on plan assets = 7,400,000 × 3.5% = 259,000; net interest = 322,000 − 259,000 = 63,000, that is the opening net liability of 1,800,000 × 3.5%. Net interest is obtained by multiplying the net defined benefit liability (asset) by the discount rate, both determined at the start of the annual period (IAS 19, paras. 123 and 123A). Trap: Calculating the income on assets with an expected return different from the discount rate. Rule to remember: Net interest = opening net liability (asset) × opening discount rate, a single rate (IAS 19, paras. 123 and 123A).","es":""},"common_error":{"fr":"","en":"Calculating the interest income on assets with an expected return different from the discount rate of the obligation.","es":""},"format":"CALCULATION","placeholders":[{"id":"dbo_open","value":"9200000","unit":"EUR"},{"id":"assets_open","value":"7400000","unit":"EUR"},{"id":"rate","value":"3.5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Present value of the obligation at the start of the year","es":""},"value":"9200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of plan assets at the start of the year","es":""},"value":"7400000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":"3.5","unit":"PERCENT"}],"steps":[{"id":"INTEREST_COST","label":{"fr":"","en":"Interest on the obligation","es":""},"answer":322000,"tolerance":0,"unit":"EUR"},{"id":"INTEREST_INCOME","label":{"fr":"","en":"Interest income on plan assets","es":""},"answer":259000,"tolerance":0,"unit":"EUR"},{"id":"NET_INTEREST","label":{"fr":"","en":"Net interest","es":""},"answer":63000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_COST","meaning":{"fr":"","en":"Interest on the obligation","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Present value of the obligation at the start of the year","es":""},"value":9200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":322000,"unit":"EUR"},{"step":"INTEREST_INCOME","meaning":{"fr":"","en":"Interest income on plan assets","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of plan assets at the start of the year","es":""},"value":7400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":259000,"unit":"EUR"},{"step":"NET_INTEREST","meaning":{"fr":"","en":"Net interest","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Interest on the obligation","es":""},"value":322000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income on plan assets","es":""},"value":259000,"unit":"EUR"}],"result":63000,"unit":"EUR"}],"rationale":{"fr":"","en":"Net interest = opening net liability (asset) × opening discount rate, a single rate (IAS 19, paras. 123 and 123A).","es":""},"references":["REF.IAS19.123","REF.IAS19.123A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000049","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000049","tested_point":"QST.IAS19.000049","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-net-interest"},"references":["IAS 19 §123","IAS 19 §123A"],"exercise":{"prompt":{"fr":"","en":"A trainee calculates the net interest of a defined benefit plan for the year. Which of his steps is wrong?","es":""},"explanation":{"fr":"","en":"Net interest is obtained by multiplying the net defined benefit liability (asset) by the discount rate, both determined at the start of the annual period, taking into account changes due to contributions and benefits paid during the period (IAS 19, paras. 123 and 123A). The wrong step uses two different rates. Trap: Calculating interest on the obligation and the expected return on assets separately with different rates. Rule to remember: A single discount rate for the obligation and for the assets in net interest (IAS 19, paras. 123 and 123A).","es":""},"common_error":{"fr":"","en":"Calculating interest on the obligation and the return on assets separately with different rates.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"I calculate interest income on assets at 6% (expected return) and interest on the obligation at 3.5%.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"I apply the discount rate set at the start of the annual period to the net liability determined at the start of the same period.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: net interest is obtained by multiplying the net liability (asset) by the discount rate, both determined at the start of the annual period. It is not the wrong step (IAS 19, paras. 123 and 123A).","es":""}},{"id":"C","text":{"fr":"","en":"I adjust the net liability base for contributions and benefits paid during the period, when they change that net liability.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the calculation takes account of changes in the net liability (asset) due to contributions and benefits paid during the period. It is not the wrong step (IAS 19, paras. 123 and 123A).","es":""}},{"id":"D","text":{"fr":"","en":"I calculate net interest directly on the net liability, with the discount rate, rather than with two separate rates for the obligation and the assets.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: net interest is calculated on the net liability (asset) with the discount rate, which amounts to a single rate for the obligation and for the assets. It is not the wrong step (IAS 19, paras. 123 and 123A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000050","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.NET_INTEREST"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000050","tested_point":"QST.IAS19.000050","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-net-interest"},"references":["IAS 19 §123","IAS 19 §123A"],"exercise":{"prompt":{"fr":"","en":"The net defined benefit liability of Maurel SA was {net_open} at the start of the year. On 1 July, Maurel paid a contribution of {contrib} into the plan fund, which reduces the net liability; there is no other movement. As a case convention, the contribution is taken into account for the time remaining in the year, that is {time_percent} of the year. The discount rate at the start of the year is {rate}. Calculate the adjusted base of the net liability, then net interest for the year.","es":""},"explanation":{"fr":"","en":"Method: contribution taken into account = 900,000 × 50% = 450,000; adjusted base = 5,400,000 − 450,000 = 4,950,000; net interest = 4,950,000 × 4% = 198,000. Net interest takes into account changes in the net liability due to contributions and benefits paid during the period (IAS 19, paras. 123 and 123A); weighting by time is the convention adopted by the case. Trap: Ignoring the contribution paid during the year in the base of net interest (216,000). Rule to remember: The base of net interest takes into account contributions and benefits paid during the period (IAS 19, paras. 123 and 123A).","es":""},"common_error":{"fr":"","en":"Ignoring contributions and benefits paid during the period in the base of net interest.","es":""},"format":"CALCULATION","placeholders":[{"id":"net_open","value":"5400000","unit":"EUR"},{"id":"contrib","value":"900000","unit":"EUR"},{"id":"time_percent","value":"50","unit":"PERCENT"},{"id":"rate","value":"4","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Net liability at the start of the year","es":""},"value":"5400000","unit":"EUR"},{"label":{"fr":"","en":"Contribution paid into the fund on 1 July","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Share of the year remaining after the contribution (case convention)","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"WEIGHTED_CONTRIB","label":{"fr":"","en":"Contribution taken into account for the time remaining","es":""},"answer":450000,"tolerance":0,"unit":"EUR"},{"id":"BASE","label":{"fr":"","en":"Adjusted base of the net liability","es":""},"answer":4950000,"tolerance":0,"unit":"EUR"},{"id":"NET_INTEREST","label":{"fr":"","en":"Net interest for the year","es":""},"answer":198000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_CONTRIB","meaning":{"fr":"","en":"Contribution taken into account for the time remaining","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Contribution paid into the fund on 1 July","es":""},"value":900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of the year remaining after the contribution (case convention)","es":""},"value":50,"unit":"PERCENT"}],"result":450000,"unit":"EUR"},{"step":"BASE","meaning":{"fr":"","en":"Adjusted base of the net liability","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net liability at the start of the year","es":""},"value":5400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Contribution taken into account for the time remaining","es":""},"value":450000,"unit":"EUR"}],"result":4950000,"unit":"EUR"},{"step":"NET_INTEREST","meaning":{"fr":"","en":"Net interest for the year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Adjusted base of the net liability","es":""},"value":4950000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":4,"unit":"PERCENT"}],"result":198000,"unit":"EUR"}],"rationale":{"fr":"","en":"The base of net interest takes into account contributions and benefits paid during the period (IAS 19, paras. 123 and 123A).","es":""},"references":["REF.IAS19.123","REF.IAS19.123A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000051","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.REMEASUREMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000051","tested_point":"QST.IAS19.000051","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-remeasurements"},"references":["IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"Which items are part of the remeasurements of the net defined benefit liability (asset)? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"Remeasurements of the net defined benefit liability (asset) comprise actuarial gains and losses, the return on plan assets excluding amounts included in net interest, and the change in the effect of the asset ceiling excluding amounts included in net interest (IAS 19, para. 127). Service cost and net interest are other components of cost. Trap: Counting the total return on assets, or net interest, among remeasurements. Rule to remember: Remeasurements = actuarial gains and losses + return on assets excluding interest + change in ceiling effect excluding interest (IAS 19, para. 127).","es":""},"common_error":{"fr":"","en":"Counting service cost or net interest among remeasurements.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Net interest on the net liability (asset), calculated at the discount rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Net interest is, with service cost, recognised in profit or loss. Remeasurements expressly exclude it: the return on assets and the effect of the ceiling count only excluding amounts included in net interest (IAS 19, para. 127).","es":""}},{"id":"B","text":{"fr":"","en":"Actuarial gains and losses on the obligation, for example due to a change in an end-of-period assumption.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The return on plan assets, excluding amounts included in net interest.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The change in the effect of the asset ceiling, excluding amounts included in net interest.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The current service cost for services rendered during the period.","es":""},"correct":false,"feedback":{"fr":"","en":"Service cost is another component of defined benefit cost, recognised in profit or loss; it is not part of remeasurements, which are taken to other comprehensive income (IAS 19, para. 127).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000052","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.REMEASUREMENTS"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000052","tested_point":"QST.IAS19.000052","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-remeasurements"},"references":["IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"The plan assets of Quirel SA had a fair value of {assets_open} at the start of the year. The discount rate at the start of the year is {rate} (case data). The actual return on assets for the year amounts to {actual_return}. No contribution or benefit was paid during the year. Calculate the interest income included in net interest, then the remeasurement of plan assets to recognise in other comprehensive income.","es":""},"explanation":{"fr":"","en":"Method: interest income = 6,000,000 × 3.5% = 210,000, already included in net interest; remeasurement of assets = actual return 275,000 − interest income 210,000 = 65,000, a gain taken to other comprehensive income. Remeasurements include the return on plan assets excluding amounts included in net interest (IAS 19, para. 127). Trap: Recognising the total actual return (275,000) as a remeasurement without deducting the interest income already included in net interest. Rule to remember: Remeasurement of assets = actual return − interest income included in net interest (IAS 19, para. 127).","es":""},"common_error":{"fr":"","en":"Recognising the total actual return on assets as a remeasurement without deducting the interest income already included in net interest.","es":""},"format":"CALCULATION","placeholders":[{"id":"assets_open","value":"6000000","unit":"EUR"},{"id":"rate","value":"3.5","unit":"PERCENT"},{"id":"actual_return","value":"275000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of plan assets at the start of the year","es":""},"value":"6000000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":"3.5","unit":"PERCENT"},{"label":{"fr":"","en":"Actual return on plan assets for the year","es":""},"value":"275000","unit":"EUR"}],"steps":[{"id":"INTEREST_INCOME","label":{"fr":"","en":"Interest income included in net interest","es":""},"answer":210000,"tolerance":0,"unit":"EUR"},{"id":"REMEASUREMENT","label":{"fr":"","en":"Remeasurement of plan assets (gain)","es":""},"answer":65000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_INCOME","meaning":{"fr":"","en":"Interest income included in net interest","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of plan assets at the start of the year","es":""},"value":6000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":210000,"unit":"EUR"},{"step":"REMEASUREMENT","meaning":{"fr":"","en":"Remeasurement of plan assets (gain)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Actual return on plan assets for the year","es":""},"value":275000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income included in net interest","es":""},"value":210000,"unit":"EUR"}],"result":65000,"unit":"EUR"}],"rationale":{"fr":"","en":"Remeasurement of assets = actual return − interest income included in net interest (IAS 19, para. 127).","es":""},"references":["REF.IAS19.127"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000054","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.OCI_NO_RECYCLING"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000054","tested_point":"QST.IAS19.000054","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-no-recycling"},"references":["IAS 19 §122"],"exercise":{"prompt":{"fr":"","en":"Remeasurements of a defined benefit plan recognised in other comprehensive income are not reclassified to profit or loss in a later period, including when the plan is settled.","es":""},"explanation":{"fr":"","en":"Remeasurements recognised in other comprehensive income are not reclassified to profit or loss in a later period; the entity may transfer the corresponding amounts within equity (IAS 19, para. 122). Settlement of the plan changes nothing. Trap: Reclassifying remeasurements to profit or loss when the plan is settled. Rule to remember: No recycling of remeasurements to profit or loss; transfer within equity is possible (IAS 19, para. 122).","es":""},"common_error":{"fr":"","en":"Reclassifying remeasurements to profit or loss when the plan is settled or employees leave.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000056","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000056","tested_point":"QST.IAS19.000056","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-rollforward"},"references":["IAS 19 §120","IAS 19 §123","IAS 19 §127"],"exercise":{"prompt":{"fr":"","en":"The defined benefit obligation of Garnel SA was {dbo_open} at the start of the year. For the year: service cost {service_cost}; discount rate at the start of the year {rate} (case data); benefits paid by the plan {benefits_paid}. No amendment, curtailment or settlement. The actuary measures the closing obligation at {dbo_close}. Calculate the interest on the obligation, the expected closing obligation based on the movements, then the actuarial loss, obtained as a balancing figure.","es":""},"explanation":{"fr":"","en":"Method: interest = 14,800,000 × 3.5% = 518,000; expected obligation = 14,800,000 + service cost 920,000 + interest 518,000 − benefits paid 610,000 = 15,628,000; actuarial loss = measured obligation 16,190,000 − expected 15,628,000 = 562,000. This difference is a remeasurement, taken to other comprehensive income; service cost and interest are components in profit or loss (IAS 19, paras. 120, 123 and 127). Trap: Calculating the remeasurement without deducting the benefits paid by the plan (a gain of 48,000 instead of a loss of 562,000). Rule to remember: Remeasurement of the obligation = measured closing obligation − obligation expected from all movements (IAS 19, para. 127).","es":""},"common_error":{"fr":"","en":"Forgetting a movement, for example benefits paid, in the reconciliation, which distorts the remeasurement obtained as a balancing figure.","es":""},"format":"CALCULATION","placeholders":[{"id":"dbo_open","value":"14800000","unit":"EUR"},{"id":"service_cost","value":"920000","unit":"EUR"},{"id":"rate","value":"3.5","unit":"PERCENT"},{"id":"benefits_paid","value":"610000","unit":"EUR"},{"id":"dbo_close","value":"16190000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Obligation at the start of the year","es":""},"value":"14800000","unit":"EUR"},{"label":{"fr":"","en":"Service cost for the year","es":""},"value":"920000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":"3.5","unit":"PERCENT"},{"label":{"fr":"","en":"Benefits paid by the plan","es":""},"value":"610000","unit":"EUR"},{"label":{"fr":"","en":"Closing obligation measured by the actuary","es":""},"value":"16190000","unit":"EUR"}],"steps":[{"id":"INTEREST_COST","label":{"fr":"","en":"Interest on the obligation","es":""},"answer":518000,"tolerance":0,"unit":"EUR"},{"id":"EXPECTED_CLOSING","label":{"fr":"","en":"Expected closing obligation based on the movements","es":""},"answer":15628000,"tolerance":0,"unit":"EUR"},{"id":"ACTUARIAL_LOSS","label":{"fr":"","en":"Actuarial loss for the year (balancing figure)","es":""},"answer":562000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_COST","meaning":{"fr":"","en":"Interest on the obligation","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Obligation at the start of the year","es":""},"value":14800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":518000,"unit":"EUR"},{"step":"EXPECTED_CLOSING","meaning":{"fr":"","en":"Expected closing obligation based on the movements","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Obligation at the start of the year","es":""},"value":14800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Service cost for the year","es":""},"value":920000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Interest on the obligation","es":""},"value":518000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Benefits paid by the plan","es":""},"value":610000,"unit":"EUR"}],"result":15628000,"unit":"EUR"},{"step":"ACTUARIAL_LOSS","meaning":{"fr":"","en":"Actuarial loss for the year (balancing figure)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Closing obligation measured by the actuary","es":""},"value":16190000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected closing obligation based on the movements","es":""},"value":15628000,"unit":"EUR"}],"result":562000,"unit":"EUR"}],"rationale":{"fr":"","en":"Remeasurement of the obligation = measured closing obligation − obligation expected from all movements (IAS 19, para. 127).","es":""},"references":["REF.IAS19.120","REF.IAS19.123","REF.IAS19.127"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000057","standard_id":"IAS19","concept_ids":["IAS19.DB_COST.ROLL_FORWARD"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000057","tested_point":"QST.IAS19.000057","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000010","section_id":"rule-rollforward"},"references":["IAS 19 §127","IAS 19 §123"],"exercise":{"prompt":{"fr":"","en":"The fair value of the plan assets of Pelcor SA was {assets_open} at the start of the year. During the year: discount rate at the start of the year {rate} (case data); employer contributions {contrib}; benefits paid by the fund {benefits_paid}. The closing fair value of the assets is {assets_close}. Calculate the interest income on the assets, the expected closing fair value based on the movements, then the return on assets excluding interest income, obtained as a balancing figure.","es":""},"explanation":{"fr":"","en":"Method: interest income = 12,000,000 × 3.5% = 420,000; expected fair value = 12,000,000 + 420,000 + contributions 700,000 − benefits paid 610,000 = 12,510,000; return excluding interest = closing fair value 12,790,000 − expected 12,510,000 = 280,000, a remeasurement gain taken to other comprehensive income. Remeasurements include the return on assets excluding amounts included in net interest (IAS 19, para. 127); interest income follows the discount rate (IAS 19, para. 123). Trap: Forgetting benefits paid or contributions in the reconciliation, which distorts the remeasurement obtained as a balancing figure. Rule to remember: Return excluding interest = closing fair value − fair value expected from all movements (IAS 19, para. 127).","es":""},"common_error":{"fr":"","en":"Forgetting a movement, contributions or benefits paid, in the reconciliation of the assets, which distorts the return excluding interest.","es":""},"format":"CALCULATION","placeholders":[{"id":"assets_open","value":"12000000","unit":"EUR"},{"id":"rate","value":"3.5","unit":"PERCENT"},{"id":"contrib","value":"700000","unit":"EUR"},{"id":"benefits_paid","value":"610000","unit":"EUR"},{"id":"assets_close","value":"12790000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of assets at the start of the year","es":""},"value":"12000000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":"3.5","unit":"PERCENT"},{"label":{"fr":"","en":"Employer contributions","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Benefits paid by the fund","es":""},"value":"610000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of assets at the reporting date","es":""},"value":"12790000","unit":"EUR"}],"steps":[{"id":"INTEREST_INCOME","label":{"fr":"","en":"Interest income on the assets","es":""},"answer":420000,"tolerance":0,"unit":"EUR"},{"id":"EXPECTED_CLOSING","label":{"fr":"","en":"Expected closing fair value based on the movements","es":""},"answer":12510000,"tolerance":0,"unit":"EUR"},{"id":"RETURN_EXCL_INTEREST","label":{"fr":"","en":"Return on assets excluding interest income (balancing figure)","es":""},"answer":280000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INTEREST_INCOME","meaning":{"fr":"","en":"Interest income on the assets","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of assets at the start of the year","es":""},"value":12000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate at the start of the year (case data)","es":""},"value":3.5,"unit":"PERCENT"}],"result":420000,"unit":"EUR"},{"step":"EXPECTED_CLOSING","meaning":{"fr":"","en":"Expected closing fair value based on the movements","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of assets at the start of the year","es":""},"value":12000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Interest income on the assets","es":""},"value":420000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Employer contributions","es":""},"value":700000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Benefits paid by the fund","es":""},"value":610000,"unit":"EUR"}],"result":12510000,"unit":"EUR"},{"step":"RETURN_EXCL_INTEREST","meaning":{"fr":"","en":"Return on assets excluding interest income (balancing figure)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of assets at the reporting date","es":""},"value":12790000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Expected closing fair value based on the movements","es":""},"value":12510000,"unit":"EUR"}],"result":280000,"unit":"EUR"}],"rationale":{"fr":"","en":"Return excluding interest = closing fair value − fair value expected from all movements (IAS 19, para. 127).","es":""},"references":["REF.IAS19.127","REF.IAS19.123"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000059","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000059","tested_point":"QST.IAS19.000059","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-psc"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"On 1 April, Evaris SA amends its defined benefit plan by improving the benefits. At the last reporting date, the obligation was 9,600,000. At 1 April, using current actuarial assumptions, the obligation is 9,910,000 before the amendment and 10,270,000 after the amendment (case facts). How does Evaris determine the past service cost?","es":""},"explanation":{"fr":"","en":"On a plan amendment, the entity remeasures the net defined benefit liability (asset) using the current fair value of plan assets and current actuarial assumptions, before determining the past service cost (IAS 19, para. 99). That cost is here the difference, at the same date and with the same assumptions, between the obligation after and before the amendment: 10,270,000 − 9,910,000 = 360,000. Trap: Calculating the past service cost with pre-amendment assumptions, without first remeasuring the net liability. Rule to remember: Past service cost = obligation after − obligation before the amendment, at the event date with current assumptions (IAS 19).","es":""},"common_error":{"fr":"","en":"Measuring the past service cost with the values of the last reporting date instead of first remeasuring the net liability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As the difference between the obligation after the amendment at 1 April and the obligation at the last reporting date, that is 670,000.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: comparing the post-amendment obligation with that at the last reporting date mixes the effect of the amendment with that of the change in assumptions since then. The net liability is first remeasured with current assumptions (IAS 19, para. 99).","es":""}},{"id":"B","text":{"fr":"","en":"As the obligation after the amendment at 1 April, that is 10,270,000, since the amendment creates a new obligation for Evaris.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the past service cost is the effect of the amendment, not the total obligation. It is measured as the difference between the obligation after and before the amendment, after remeasuring the net liability at current assumptions (IAS 19).","es":""}},{"id":"C","text":{"fr":"","en":"As the difference between the obligation after and before the amendment, both measured at 1 April using current assumptions, that is 360,000.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As the difference between the obligation before the amendment at 1 April and that at the last reporting date, that is 310,000, which measures the effect of the improvement.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the difference of 310,000 between the obligation before the amendment and that at the last reporting date comes from the change in assumptions and the remeasurement, not from the amendment itself. The amendment contributes 360,000 (IAS 19).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000061","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000061","tested_point":"QST.IAS19.000061","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-psc"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"On 1 April, Sablet SA amends its defined benefit plan. At the last reporting date, the obligation was {dbo_last}. At 1 April, after remeasuring the net liability using the fair value of assets and current actuarial assumptions, the obligation is {dbo_before} before the amendment and {dbo_after} after the amendment (case data). Calculate the past service cost.","es":""},"explanation":{"fr":"","en":"Method: the net liability is first remeasured using current assumptions and fair value (IAS 19, para. 99). The past service cost is the difference between the obligation after and before the amendment at that date: 22,010,000 − 21,350,000 = 660,000. The obligation at the last reporting date (20,900,000) does not enter this calculation: comparing it with the post-amendment obligation (1,110,000) would mix the amendment and the change in assumptions. Trap: Measuring the past service cost with the values before the remeasurement. Rule to remember: Past service cost = obligation after − obligation before the amendment, measured at the same date with current assumptions (IAS 19).","es":""},"common_error":{"fr":"","en":"Comparing the post-amendment obligation with that of the last reporting date instead of the pre-amendment obligation at the same date.","es":""},"format":"CALCULATION","placeholders":[{"id":"dbo_last","value":"20900000","unit":"EUR"},{"id":"dbo_before","value":"21350000","unit":"EUR"},{"id":"dbo_after","value":"22010000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Obligation at the last reporting date","es":""},"value":"20900000","unit":"EUR"},{"label":{"fr":"","en":"Obligation at 1 April before the amendment (current assumptions)","es":""},"value":"21350000","unit":"EUR"},{"label":{"fr":"","en":"Obligation at 1 April after the amendment (current assumptions)","es":""},"value":"22010000","unit":"EUR"}],"steps":[{"id":"PAST_SERVICE_COST","label":{"fr":"","en":"Past service cost","es":""},"answer":660000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PAST_SERVICE_COST","meaning":{"fr":"","en":"Past service cost","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Obligation at 1 April after the amendment (current assumptions)","es":""},"value":22010000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Obligation at 1 April before the amendment (current assumptions)","es":""},"value":21350000,"unit":"EUR"}],"result":660000,"unit":"EUR"}],"rationale":{"fr":"","en":"Past service cost = obligation after − obligation before the amendment, measured at the same date with current assumptions (IAS 19).","es":""},"references":["REF.IAS19.99"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000062","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.CURTAILMENT"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000062","tested_point":"QST.IAS19.000062","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-curtailment-settlement"},"references":["IAS 19 §99","IAS 19 §101A"],"exercise":{"prompt":{"fr":"","en":"A trainee describes the treatment of a plan curtailment that occurred during the year, following the elimination of many jobs. Which of his steps is wrong?","es":""},"explanation":{"fr":"","en":"On a plan amendment, curtailment or settlement, the entity remeasures the net defined benefit liability (asset) using the current fair value of assets and current actuarial assumptions, before determining the effect of the event; the effect of the asset ceiling is taken into account only after (IAS 19, paras. 99 and 101A). The wrong step relies on the values at the last reporting date. Trap: Treating a plan curtailment without first remeasuring the net liability. Rule to remember: Remeasure the net liability at current values first, then determine the effect of the curtailment (IAS 19, para. 99).","es":""},"common_error":{"fr":"","en":"Treating a plan curtailment with the values at the last reporting date, without first remeasuring the net liability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"I remeasure the net liability using the current fair value of plan assets and current actuarial assumptions before measuring the effect.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the entity remeasures the net defined benefit liability (asset) using the current fair value of plan assets and current actuarial assumptions before determining the effect of the event. It is not the wrong step (IAS 19, para. 99).","es":""}},{"id":"B","text":{"fr":"","en":"I take the effect of the asset ceiling into account after determining the effect of the curtailment, not before.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the effect of the asset ceiling is taken into account only after determining the past service cost or the result of the event. It is not the wrong step (IAS 19, para. 101A).","es":""}},{"id":"C","text":{"fr":"","en":"I measure the curtailment gain using the values at the last reporting date, without remeasuring the net liability at the curtailment date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"I follow the same approach for an amendment and a settlement: prior remeasurement, then determination of the cost or result.","es":""},"correct":false,"feedback":{"fr":"","en":"This step is correct: the prior remeasurement applies to an amendment, curtailment or settlement, before determining the past service cost or the settlement result. It is not the wrong step (IAS 19, para. 99).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000064","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.SETTLEMENT"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000064","tested_point":"QST.IAS19.000064","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-curtailment-settlement"},"references":["IAS 19 §99"],"exercise":{"prompt":{"fr":"","en":"On 30 September, Tarnel SA settles the rights of a group of retirees by a payment of {settlement_price} taken from the fund. The corresponding obligation, remeasured at 30 September using current actuarial assumptions and before the settlement, is {settled_obligation}; at the last reporting date it was {last_closing}, using the assumptions of the time (case data). Calculate the settlement loss.","es":""},"explanation":{"fr":"","en":"Method: the net liability is first remeasured using current assumptions and fair value before the settlement result is determined (IAS 19, para. 99). The result is the difference between the settled obligation, remeasured at that date, and the settlement price: 4,250,000 − 4,380,000 = −130,000, that is a loss of 130,000. The obligation at the last reporting date (3,980,000) is not the base: it would give a loss of 400,000. Trap: Measuring the settlement loss with the obligation at the last reporting date instead of the value remeasured at the settlement date. Rule to remember: Settlement result = settled obligation remeasured at the date − settlement price (IAS 19).","es":""},"common_error":{"fr":"","en":"Measuring the settlement loss with the obligation at the last reporting date instead of the value remeasured at the settlement date.","es":""},"format":"CALCULATION","placeholders":[{"id":"settled_obligation","value":"4250000","unit":"EUR"},{"id":"settlement_price","value":"4380000","unit":"EUR"},{"id":"last_closing","value":"3980000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Obligation settled, remeasured at 30 September (current assumptions)","es":""},"value":"4250000","unit":"EUR"},{"label":{"fr":"","en":"Settlement price","es":""},"value":"4380000","unit":"EUR"},{"label":{"fr":"","en":"Corresponding obligation at the last reporting date","es":""},"value":"3980000","unit":"EUR"}],"steps":[{"id":"LOSS","label":{"fr":"","en":"Settlement loss","es":""},"answer":130000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000066","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.REMEASUREMENT_BEFORE_PSC"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000066","tested_point":"QST.IAS19.000066","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-order"},"references":["IAS 19 §99","IAS 19 §123A"],"exercise":{"prompt":{"fr":"","en":"On 1 July, following a plan amendment, Zelmar SA remeasures its net defined benefit liability and obtains {net_remeasured} after taking the event into account. The discount rate of the remeasurement is 4.4% a year; as six months of the year remain, the effective rate for the rest of the period is {effective_rate} (case convention: no contribution or benefit changes the net liability up to the reporting date). At the start of the year, the net liability was {net_open}, with a rate of 3.8% (case data). Calculate net interest for the second half-year.","es":""},"explanation":{"fr":"","en":"Method: after an amendment, net interest for the rest of the annual period is determined on the remeasured net liability, using the discount rate used for the remeasurement (IAS 19, para. 123A). Net interest for the second half-year = 3,600,000 × 2.2% = 79,200 (4.4% × 6/12 = 2.2%). The opening net liability of 4,100,000 and the rate of 3.8% are no longer used for this period (IAS 19, para. 99). Trap: Keeping the opening balance and rate for net interest for the rest of the period after the event. Rule to remember: After a remeasurement due to a plan event, net interest for the rest of the period uses the remeasured net liability and the rate of the remeasurement (IAS 19, para. 123A).","es":""},"common_error":{"fr":"","en":"Keeping the opening assumptions and balance for net interest for the rest of the period after a plan event.","es":""},"format":"CALCULATION","placeholders":[{"id":"net_remeasured","value":"3600000","unit":"EUR"},{"id":"effective_rate","value":"2.2","unit":"PERCENT"},{"id":"net_open","value":"4100000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Net liability remeasured at 1 July, after the event","es":""},"value":"3600000","unit":"EUR"},{"label":{"fr":"","en":"Effective rate for the rest of the period (4.4% × 6/12)","es":""},"value":"2.2","unit":"PERCENT"},{"label":{"fr":"","en":"Net liability at the start of the year","es":""},"value":"4100000","unit":"EUR"}],"steps":[{"id":"NET_INTEREST_REST","label":{"fr":"","en":"Net interest for the second half-year","es":""},"answer":79200,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_INTEREST_REST","meaning":{"fr":"","en":"Net interest for the second half-year","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net liability remeasured at 1 July, after the event","es":""},"value":3600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Effective rate for the rest of the period (4.4% × 6/12)","es":""},"value":2.2,"unit":"PERCENT"}],"result":79200,"unit":"EUR"}],"rationale":{"fr":"","en":"After a remeasurement due to a plan event, net interest for the rest of the period uses the remeasured net liability and the rate of the remeasurement (IAS 19, para. 123A).","es":""},"references":["REF.IAS19.99","REF.IAS19.123A"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000069","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.OTHER_LONG_TERM","IAS19.DB_COST.COMPONENTS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000069","tested_point":"QST.IAS19.000069","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-components"},"references":["IAS 19 §156","IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"Elvane SA has two commitments. The liability for its long-service bonus, paid after twenty years of service, suffers a remeasurement loss of 5,100. The liability of its defined benefit pension plan suffers a remeasurement loss of 12,000. Where are these two losses recognised?","es":""},"explanation":{"fr":"","en":"Rule (IAS 19): for an other long-term benefit, all changes in the liability go to profit or loss, remeasurements included (IAS 19, para. 156); this is not the case for a defined benefit plan, whose remeasurements of the net liability go to other comprehensive income (IAS 19, para. 120). The 5,100 therefore goes to profit or loss, the 12,000 to other comprehensive income. Trap: Recognising in other comprehensive income the remeasurements of an other long-term benefit, as for a post-employment plan. Rule to remember: Other long-term benefits: everything in profit or loss under IAS 19; defined benefit plans: remeasurements in other comprehensive income (IAS 19, para. 120).","es":""},"common_error":{"fr":"","en":"Recognising in other comprehensive income the remeasurements of an other long-term benefit, as for a post-employment plan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 5,100 of the long-service bonus in profit or loss; the 12,000 of the pension plan in other comprehensive income.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 5,100 and the 12,000 in profit or loss, since both commitments are employee benefits whose liability has been remeasured.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the two commitments are not treated alike. Remeasurements of the defined benefit pension plan go to other comprehensive income, whereas, under IAS 19, those of the long-service bonus go to profit or loss (IAS 19, paras. 120 and 156).","es":""}},{"id":"C","text":{"fr":"","en":"The 5,100 and the 12,000 in other comprehensive income, since both losses come from remeasurements of the entity's liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: IAS 19 places in profit or loss the remeasurement of an other long-term benefit such as the long-service bonus. Only the remeasurement of the defined benefit plan, a remeasurement of the net liability, goes to other comprehensive income (IAS 19, paras. 120 and 156).","es":""}},{"id":"D","text":{"fr":"","en":"The 5,100 of the long-service bonus in other comprehensive income; the 12,000 of the pension plan in profit or loss, with the service cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: this answer swaps the two treatments. The defined benefit plan places its remeasurements in other comprehensive income, whereas, under IAS 19, the long-service bonus places them in profit or loss (IAS 19, paras. 120 and 156).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000071","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000071","tested_point":"QST.IAS19.000071","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-termination"},"references":["IAS 19 §165","IAS 19 §166"],"exercise":{"prompt":{"fr":"","en":"On 15 November, Solane SA offers its employees voluntary redundancy payments. Nothing prevents it from withdrawing the offer before an employee accepts it. One employee accepts on 10 December, another on 5 January. The year ends on 31 December and, at that date, Solane has recognised no IAS 37 restructuring costs that include termination payments (case facts). Which treatment is consistent at 31 December?","es":""},"explanation":{"fr":"","en":"A liability and an expense for termination benefits are recognised at the earlier of two dates: when the entity can no longer withdraw the offer, and when it recognises IAS 37 restructuring costs that include termination payments; for a voluntary offer, the date the offer can no longer be withdrawn is the earlier of the employee's acceptance and the effective date of a restriction (IAS 19). Here, only the employee who accepted on 10 December gives rise to a liability at 31 December. Trap: Waiting for employees to leave before recognising payments whose offer can no longer be withdrawn, or recognising an offer that can still be withdrawn. Rule to remember: The liability arises when the offer can no longer be withdrawn, not at announcement nor at actual departure (IAS 19, para. 165).","es":""},"common_error":{"fr":"","en":"Waiting for employees to leave before recognising payments whose offer can no longer be withdrawn, or recognising an offer that can still be withdrawn.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability and an expense for all the employees concerned, from the announcement of the offer on 15 November, since Solane has exposed itself to that expenditure.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: announcing the offer is not enough, since Solane can still withdraw it until an employee has accepted. The liability arises at the earlier of the two dates provided, here the employee's acceptance (IAS 19, paras. 165 and 166).","es":""}},{"id":"B","text":{"fr":"","en":"A liability and an expense at the actual leaving date of each employee, because termination payments are recognised once the services have ended.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: waiting for the actual leaving date amounts to deferring the expense beyond the date when the offer can no longer be withdrawn. The liability is recognised at that date, here 10 December for the first employee (IAS 19, para. 165).","es":""}},{"id":"C","text":{"fr":"","en":"A liability and an expense for both employees, because the one who accepts on 5 January decided before the financial statements are issued.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the acceptance of 5 January is after the reporting date, and nothing prevented Solane from withdrawing the offer in respect of that employee at 31 December. That payment is not a liability of the year just ended (IAS 19, para. 165).","es":""}},{"id":"D","text":{"fr":"","en":"A liability and an expense for the payment to the employee who accepted on 10 December, because Solane can no longer withdraw the offer in respect of that employee.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000072","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"CALCULATION","context":"V1_QST.IAS19.000072","tested_point":"QST.IAS19.000072","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-termination"},"references":["IAS 19 §165"],"exercise":{"prompt":{"fr":"","en":"On 18 December, before the reporting date, employees of Dunar SA accepted a departure offer that Dunar can no longer withdraw. The termination payments, totalling {amount}, will be settled in {years}, hence beyond twelve months after the reporting date. The discount rate adopted for the case is {rate} (management's figure). Calculate the liability to recognise at 31 December.","es":""},"explanation":{"fr":"","en":"Method: the offer can no longer be withdrawn before the reporting date, so a liability exists at 31 December (IAS 19, para. 165). As the payments are not settled entirely within twelve months, the rules for other long-term benefits apply, hence discounting: 1,500,000 ÷ 1.03^2 = 1,413,893.86. The 3% rate is management's figure for the case. The corresponding expense is recognised at the same time. Trap: Recognising the nominal amount of 1,500,000, or waiting for employees to leave. Rule to remember: Payments settled beyond twelve months: liability at present value, recognised when the offer can no longer be withdrawn (IAS 19).","es":""},"common_error":{"fr":"","en":"Recognising the nominal amount without discounting payments settled well beyond twelve months, or waiting for actual departure.","es":""},"format":"CALCULATION","placeholders":[{"id":"amount","value":"1500000","unit":"EUR"},{"id":"rate","value":"3","unit":"PERCENT"},{"id":"years","value":"2","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Termination payments to be settled in total","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (management's figure for the case)","es":""},"value":"3","unit":"PERCENT"},{"label":{"fr":"","en":"Settlement period","es":""},"value":"2","unit":"YEARS"}],"steps":[{"id":"PRESENT_VALUE","label":{"fr":"","en":"Liability to recognise at 31 December","es":""},"answer":1413893.86,"tolerance":0.01,"unit":"EUR"}],"formula":{"lines":[{"step":"PRESENT_VALUE","meaning":{"fr":"","en":"Liability to recognise at 31 December","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Termination payments to be settled in total","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (management's figure for the case)","es":""},"value":3,"unit":"PERCENT"}],"result":1413893.86,"unit":"EUR"}],"rationale":{"fr":"","en":"Payments settled beyond twelve months: liability at present value, recognised when the offer can no longer be withdrawn (IAS 19).","es":""},"references":["REF.IAS19.165"]}},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000074","standard_id":"IAS19","concept_ids":["IAS19.DISCLOSURE.OBJECTIVE_AND_STRUCTURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000074","tested_point":"QST.IAS19.000074","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"rule-objective"},"references":["IAS 19 §135"],"exercise":{"prompt":{"fr":"","en":"Which objectives are pursued by the disclosures about defined benefit plans? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The objective of the disclosures about defined benefit plans is to explain the characteristics of the plans and the associated risks, the amounts in the financial statements, and the amount, timing and uncertainty of future cash flows (IAS 19, para. 135). Explaining characteristics and risks, the amounts in the financial statements and future flows are objectives; justifying the actuarial method or comparing the return on assets with an index is not. Trap: Omitting information about risks and future flows by limiting the notes to the amounts in the financial statements. Rule to remember: Three objectives: characteristics and risks, amounts in the financial statements, future cash flows (IAS 19, para. 135).","es":""},"common_error":{"fr":"","en":"Limiting the notes to the amounts in the financial statements and forgetting characteristics, risks and future cash flows.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To compare each year the return on plan assets with that of a reference stock market index.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the annual comparison of the return on assets with a stock market index is not among the objectives of the disclosures; these concern characteristics and risks, amounts and future flows (IAS 19, para. 135).","es":""}},{"id":"B","text":{"fr":"","en":"To explain the characteristics of the plans and the risks associated with them.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To explain the amounts that appear in the financial statements in respect of these plans.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To justify the choice of the method for measuring the obligation over the other possible actuarial methods.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the objectives of the disclosures do not include justifying the choice of the actuarial method over other possible methods; they concern characteristics, amounts and future cash flows (IAS 19, para. 135).","es":""}},{"id":"E","text":{"fr":"","en":"To describe how the plans may affect the amount, timing and uncertainty of the entity's future cash flows.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000075","standard_id":"IAS19","concept_ids":["IAS19.DISCLOSURE.SENSITIVITY_AND_RECONCILIATIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000075","tested_point":"QST.IAS19.000075","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000013","section_id":"rule-sensitivity"},"references":["IAS 19 §145"],"exercise":{"prompt":{"fr":"","en":"Tavrel SA has three significant actuarial assumptions for its defined benefit plan: the discount rate, salary growth and mortality. In its notes, it presents a sensitivity analysis for the discount rate alone (case facts). What should be concluded about this disclosure?","es":""},"explanation":{"fr":"","en":"A sensitivity analysis is presented for each significant actuarial assumption, showing the effect on the obligation of reasonably possible changes in the assumption (IAS 19, para. 145). Tavrel presented only that of the discount rate although salaries and mortality are also significant: the disclosure is incomplete. Trap: Presenting a sensitivity for one assumption only when several assumptions are significant. Rule to remember: One sensitivity per significant actuarial assumption, measured on the obligation (IAS 19, para. 145).","es":""},"common_error":{"fr":"","en":"Limiting the analysis to the sensitivity of one assumption when several actuarial assumptions are significant.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is complete, because the discount rate is the dominant assumption and the sensitivity of the other two assumptions provides no useful information to the readers of the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the supposed dominance of one assumption does not excuse presenting the sensitivity of the other significant assumptions. The analysis is expected for each significant actuarial assumption, including salaries and mortality (IAS 19, para. 145).","es":""}},{"id":"B","text":{"fr":"","en":"It is incomplete: a sensitivity analysis is expected for each significant actuarial assumption, showing the effect on the obligation of reasonably possible changes.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is complete if Tavrel states that the other assumptions remained stable during the year, which excuses analysing their sensitivity.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the past stability of an assumption does not replace the analysis of its sensitivity, which relates to reasonably possible future changes. Each significant assumption must be analysed (IAS 19, para. 145).","es":""}},{"id":"D","text":{"fr":"","en":"It is incomplete, but the expected analysis must relate to plan assets and not to the obligation, whose effect is already known.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the sensitivity analysis shows the effect on the obligation of reasonably possible changes in each significant assumption, not on plan assets. The conclusion of incompleteness is right, but the object indicated is wrong (IAS 19, para. 145).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000076","standard_id":"IAS19","concept_ids":["IAS19.INTERACTIONS.IAS37","IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000076","tested_point":"QST.IAS19.000076","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-termination"},"references":["IAS 19 §165","IAS 19"],"exercise":{"prompt":{"fr":"","en":"Hovel SA announces in November the closure of a factory. The individual redundancy payments offered to employees can no longer be withdrawn from 15 November. The plan also includes site restoration costs, unrelated to staff (case facts). Which analysis is consistent with the boundary between IAS 19 and IAS 37?","es":""},"explanation":{"fr":"","en":"A liability and an expense for termination benefits are recognised at the earlier of two dates: when the entity can no longer withdraw the offer, and when it recognises IAS 37 restructuring costs that include termination payments (IAS 19, para. 165). The payments fall under IAS 19, not IAS 37; their recognition may precede that of the other restructuring costs, which follow IAS 37. Trap: Accounting for termination payments under IAS 37 instead of IAS 19. Rule to remember: Redundancy payments: IAS 19; other restructuring costs: IAS 37 (IAS 19, para. 165).","es":""},"common_error":{"fr":"","en":"Accounting for redundancy payments under IAS 37, like the rest of the restructuring, instead of IAS 19.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The whole restructuring, payments included, falls under IAS 37: a single provision is recognised on the date the factory closure plan is announced, before any irrevocable commitment.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: termination benefits fall under IAS 19, not IAS 37, even in a restructuring. Their recognition may precede that of the other restructuring costs, and is not merged into a single provision (IAS 19, para. 165).","es":""}},{"id":"B","text":{"fr":"","en":"The payments fall under IAS 19, but they are recognised when actually paid, like the entity's other long-term benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: the liability does not wait for payment. It is recognised at the earlier date on which the offer can no longer be withdrawn, here 15 November, or on which IAS 37 restructuring costs including these payments are recognised (IAS 19, para. 165).","es":""}},{"id":"C","text":{"fr":"","en":"The payments fall under IAS 37 because they result from a restructuring; IAS 19 applies to the other staff costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Incorrect: a restructuring does not move redundancy payments into IAS 37. Termination benefits fall under IAS 19; IAS 37 covers the other restructuring costs, such as site restoration (IAS 19, para. 165).","es":""}},{"id":"D","text":{"fr":"","en":"The redundancy payments fall under IAS 19, at the earlier of the two dates; site restoration falls under IAS 37.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000077","standard_id":"IAS19","concept_ids":["IAS19.INTERACTIONS.IFRS18","IAS19.DB_COST.COMPONENTS"],"dimension":"ANALYSIS","context":"V1_QST.IAS19.000077","tested_point":"QST.IAS19.000077","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000009","section_id":"rule-components"},"references":["IAS 19","IAS 19 §120"],"exercise":{"prompt":{"fr":"","en":"A trainee prepares a note on the consequential amendments that IFRS 18 makes to IAS 19, applicable when the entity applies IFRS 18. Which of the trainee's sentences is wrong?","es":""},"explanation":{"fr":"","en":"Defined benefit cost comprises service cost and net interest, in profit or loss, and remeasurements of the net defined benefit liability (asset), in other comprehensive income (IAS 19, para. 120). The consequential amendments of IFRS 18, applicable with that standard, refer to IFRS 18 for presentation and disclosure without changing how these components are recognised. The wrong sentence attributes to IFRS 18 a transfer of remeasurements to profit or loss. Trap: Confusing a change in presentation with a change in recognition. Rule to remember: IFRS 18 changes presentation cross-references in IAS 19, not the recognition of the cost components (IAS 19, para. 120).","es":""},"common_error":{"fr":"","en":"Believing that IFRS 18 moves remeasurements of defined benefit plans to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 18 deals with the presentation of and disclosures in financial statements, whereas IAS 19 sets the accounting for the components of defined benefit cost.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 18 concerns presentation and disclosures, whereas IAS 19 determines the components of defined benefit cost (IAS 19, para. 120). It is not the wrong sentence.","es":""}},{"id":"B","text":{"fr":"","en":"With IFRS 18, remeasurements of the net defined benefit liability (asset) are recognised in profit or loss rather than in other comprehensive income.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The consequential amendments refer to IFRS 18 for the presentation of service cost and net interest, IAS 19 still not requiring any particular presentation.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the consequential amendments refer to IFRS 18 for the presentation of service cost and net interest, without IAS 19 requiring a presentation. It is not the wrong sentence.","es":""}},{"id":"D","text":{"fr":"","en":"Defined benefit cost keeps three components: service cost, net interest and remeasurements of the net liability (asset), which the note recalls.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: defined benefit cost comprises service cost, net interest and remeasurements of the net liability (asset) (IAS 19, para. 120). It is not the wrong sentence.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000078","standard_id":"IAS19","concept_ids":["IAS19.POST_EMPLOYMENT.DC_VS_DB_CLASSIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000078","tested_point":"QST.IAS19.000078","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000004","section_id":"rule-classification"},"references":["IAS 19 §26","IAS 19 §27"],"exercise":{"prompt":{"fr":"","en":"Each year, Sirius SA pays an insurer a contribution equal to 5 % of salaries; the insurer then pays the retirement pensions. The contract provides that Sirius pays additional contributions if the accumulated assets are insufficient to pay the promised pensions (case facts). How is this plan classified under IAS 19?","es":""},"explanation":{"fr":"","en":"IAS 19 applies to post-employment benefits, including retirement pensions, whether or not a separate entity receives the contributions and pays the benefits (IAS 19, para. 26). The plan is classified according to its economic substance, as derived from its principal terms and conditions: in a defined contribution plan, the obligation is limited to the agreed contributions and actuarial and investment risk fall on the employee; in a defined benefit plan, they fall on the entity (IAS 19, para. 27, referring to paras. 28 to 30). The undertaking to pay additional contributions is a case fact: it places the risk of insufficient assets on Sirius. Trap: classifying by the contribution rate or by the presence of an insurer. Rule to remember: substance, that is who bears the risks, decides the classification.","es":""},"common_error":{"fr":"","en":"Classifying a plan as defined contribution solely on the basis of its contribution rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a defined contribution plan, since the benefits are paid by a separate entity, the insurer.","es":""},"correct":false,"feedback":{"fr":"","en":"The presence of a separate entity does not decide the classification: the Standard applies whether or not the benefits are paid by a separate entity (IAS 19, para. 26).","es":""}},{"id":"B","text":{"fr":"","en":"As a defined benefit plan: in substance, the risk of insufficient assets falls on Sirius, whose obligation goes beyond the agreed contributions.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a defined contribution plan, since the annual contribution is set at 5 % of salaries.","es":""},"correct":false,"feedback":{"fr":"","en":"A fixed contribution rate is not enough: the undertaking to top up contributions takes the obligation beyond the agreed contributions (IAS 19, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"Outside the scope of IAS 19, since a pension paid by an insurer is not an employee benefit of Sirius.","es":""},"correct":false,"feedback":{"fr":"","en":"Retirement pensions are post-employment benefits within the Standard, even when paid by a third party (IAS 19, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000079","standard_id":"IAS19","concept_ids":["IAS19.DEFINED_BENEFIT.ACTUARIAL_ASSUMPTIONS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000079","tested_point":"QST.IAS19.000079","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000007","section_id":"rule-assumptions"},"references":["IAS 19 §77","IAS 19 §80"],"exercise":{"prompt":{"fr":"","en":"To measure the obligation of a defined benefit plan of Rigel SA, the actuary presents four approaches for setting the actuarial assumptions (case facts). Which one is consistent with IAS 19?","es":""},"explanation":{"fr":"","en":"Actuarial assumptions are unbiased if they are neither imprudent nor excessively conservative (IAS 19, para. 77, applying para. 75, which requires unbiased and mutually compatible assumptions). Financial assumptions are based on market expectations, at the end of the reporting period, for the period over which the obligations are to be settled (IAS 19, para. 80). The approaches presented are case data; choosing the values themselves remains a matter of professional judgement. Trap: believing that excessive conservatism is a virtue, or freezing the assumptions at their original date. Rule to remember: unbiased assumptions, financial ones based on the market at the reporting date.","es":""},"common_error":{"fr":"","en":"Confusing unbiased actuarial assumptions with conservative ones.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Use deliberately very conservative assumptions, to guard against understating the obligation.","es":""},"correct":false,"feedback":{"fr":"","en":"Excessive conservatism makes the assumptions biased: they must be neither imprudent nor excessively conservative (IAS 19, para. 77).","es":""}},{"id":"B","text":{"fr":"","en":"Base the financial assumptions on management's expectations at the date the plan was set up, to keep them stable over time.","es":""},"correct":false,"feedback":{"fr":"","en":"Financial assumptions are based on market expectations at the end of the reporting period, not on expectations frozen when the plan was set up (IAS 19, para. 80).","es":""}},{"id":"C","text":{"fr":"","en":"Use assumptions that are neither imprudent nor excessively conservative, the financial assumptions reflecting market expectations at the reporting date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Use optimistic assumptions to reduce the obligation, the difference being corrected later through remeasurements.","es":""},"correct":false,"feedback":{"fr":"","en":"Imprudent assumptions are not unbiased; the possibility of later remeasurements does not justify them (IAS 19, para. 77).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000080","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.PAST_SERVICE_COST"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000080","tested_point":"QST.IAS19.000080","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-psc"},"references":["IAS 19 §103"],"exercise":{"prompt":{"fr":"","en":"On 1 March N, Altair SA amends its defined benefit plan, which increases the obligation by 400,000 (past service cost, case data). This amendment is part of a restructuring whose related costs were recognised under IAS 37 as early as 15 January N (case facts). When does Altair recognise the past service cost as an expense?","es":""},"explanation":{"fr":"","en":"Past service cost, the change in the obligation resulting from a plan amendment or curtailment (para. 102), is recognised as an expense at the earlier of the following dates: when the plan amendment or curtailment occurs, and when the entity recognises related restructuring costs under IAS 37 or related termination benefits (IAS 19, para. 103). The dates and the amount of 400,000 are case data: 15 January N precedes 1 March N. Trap: always using the amendment date, or spreading the expense. Rule to remember: the earlier of the two dates, with no spreading.","es":""},"common_error":{"fr":"","en":"Always using the date of the plan amendment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On 15 January N, the earlier of the two dates, since recognition of the related restructuring costs precedes the plan amendment.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"On 1 March N, the date of the plan amendment, whatever the date on which the restructuring costs are recognised.","es":""},"correct":false,"feedback":{"fr":"","en":"The amendment date is used only if it is the earlier one; here, the related restructuring costs were recognised before (IAS 19, para. 103).","es":""}},{"id":"C","text":{"fr":"","en":"Spread over the remaining working lives of the employees concerned, from 1 March N.","es":""},"correct":false,"feedback":{"fr":"","en":"Past service cost is not spread: it is recognised as an expense at the earlier of the two dates (IAS 19, para. 103).","es":""}},{"id":"D","text":{"fr":"","en":"At the end of year N, through a remeasurement recognised outside profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Past service cost is recognised as an expense at the earlier of the two dates, not through a year-end remeasurement (IAS 19, para. 103).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000081","standard_id":"IAS19","concept_ids":["IAS19.PLAN_CHANGES.SETTLEMENT"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000081","tested_point":"QST.IAS19.000081","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000011","section_id":"rule-curtailment-settlement"},"references":["IAS 19 §109"],"exercise":{"prompt":{"fr":"","en":"Hydra SA transfers to an insurer all the obligations of a defined benefit plan, which it thereby settles definitively (case facts). At the settlement date, the present value of the obligation being settled, determined at that date, is 1,000,000; the settlement price comprises plan assets transferred of 850,000 and a direct payment by Hydra of 100,000 (case data). What is the gain or loss on settlement, and when is it recognised?","es":""},"explanation":{"fr":"","en":"Method: settlement price = 850,000 + 100,000 = 950,000; gain on settlement = 1,000,000 − 950,000 = 50,000. The gain or loss on settlement is the difference between the present value of the obligation being settled, as determined on the date of settlement, and the settlement price, which includes plan assets transferred and payments made directly by the entity; it is recognised when the settlement occurs (IAS 19, paras. 109 and 110). The amounts are case data. Trap: leaving the entity's direct payment out of the settlement price. Rule to remember: obligation settled less total settlement price, at the settlement date.","es":""},"common_error":{"fr":"","en":"Excluding from the settlement price the payments made directly by the entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of 50,000, recognised at the end of the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement price, 950,000, is lower than the obligation settled, 1,000,000: this is a gain, recognised when the settlement occurs (IAS 19, para. 109).","es":""}},{"id":"B","text":{"fr":"","en":"A gain of 50,000, recognised when the settlement occurs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A gain of 150,000, since Hydra's direct payment is not part of the settlement price.","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement price also includes payments made directly by the entity: 850,000 + 100,000 (IAS 19, para. 109).","es":""}},{"id":"D","text":{"fr":"","en":"Neither a gain nor a loss, since the obligation is extinguished by the transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"The transfer extinguishes the obligation, but the difference between the obligation settled and the settlement price is a gain or loss on settlement (IAS 19, para. 109).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000082","standard_id":"IAS19","concept_ids":["IAS19.SCOPE.CATEGORIES","IAS19.OTHER_BENEFITS.OTHER_LONG_TERM"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IAS19.000082","tested_point":"QST.IAS19.000082","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000001","section_id":"rule-categories"},"references":["IAS 19 §153"],"exercise":{"prompt":{"fr":"","en":"Orion SA grants its employees a jubilee benefit paid after 25 years of service; it is not expected to be settled wholly within twelve months after the end of the annual reporting period in which the related service is rendered (case facts). In which category of employee benefits does IAS 19 place this benefit?","es":""},"explanation":{"fr":"","en":"Other long-term employee benefits include, if not expected to be settled wholly within twelve months after the end of the annual reporting period in which the service is rendered, jubilee or other long-service benefits, long-term paid absences, long-term disability benefits, profit-sharing and bonuses and deferred remuneration (IAS 19, para. 153); their accounting is set out in paras. 154 to 156. The timing of the benefit is case data. Trap: relying only on the fact that the employee is in service, or on the link with length of service. Rule to remember: a jubilee benefit not settled wholly within twelve months is another long-term employee benefit.","es":""},"common_error":{"fr":"","en":"Classifying a jubilee benefit as a post-employment benefit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A short-term employee benefit, since it is paid to an employee who is still in service.","es":""},"correct":false,"feedback":{"fr":"","en":"The benefit is not settled wholly within twelve months after the end of the period of service: it is not a short-term benefit (IAS 19, para. 153).","es":""}},{"id":"B","text":{"fr":"","en":"A post-employment benefit, since it depends on the length of service earned.","es":""},"correct":false,"feedback":{"fr":"","en":"The benefit is paid during employment, after 25 years of service, not after employment ends: it is another long-term benefit (IAS 19, para. 153).","es":""}},{"id":"C","text":{"fr":"","en":"A termination benefit, since it rewards the completion of a period of service.","es":""},"correct":false,"feedback":{"fr":"","en":"The benefit does not compensate the termination of employment: jubilee or other long-service benefits are other long-term benefits (IAS 19, para. 153).","es":""}},{"id":"D","text":{"fr":"","en":"Another long-term employee benefit.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IAS19.000083","standard_id":"IAS19","concept_ids":["IAS19.OTHER_BENEFITS.TERMINATION_BENEFITS"],"dimension":"APPLICATION","context":"V1_QST.IAS19.000083","tested_point":"QST.IAS19.000083","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IAS19","lesson_id":"LS.IAS19.000012","section_id":"rule-termination"},"references":["IAS 19 §169"],"exercise":{"prompt":{"fr":"","en":"In N, Lyra SA recognises termination benefits under two schemes that are not an enhancement of post-employment benefits (case facts). The Nord scheme will be paid in full in March N+1; the Sud scheme will be paid in monthly instalments until December N+3. The financial year ends on 31 December (case facts). Under which requirements does IAS 19 measure these benefits?","es":""},"explanation":{"fr":"","en":"Termination benefits are measured according to the nature of the benefit: under the requirements for post-employment benefits if they are an enhancement of those benefits; otherwise, under the requirements for short-term employee benefits if they are expected to be settled wholly before twelve months after the end of the annual reporting period in which they are recognised, and under the requirements for other long-term employee benefits if not (IAS 19, para. 169). The settlement dates are case data: Nord is settled wholly in March N+1, within twelve months; Sud runs until December N+3. Trap: applying a single requirement to all termination benefits, or starting from the date of the triggering event. Rule to remember: nature of the benefit, then timing of full settlement.","es":""},"common_error":{"fr":"","en":"Measuring all termination benefits under a single requirement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The Nord scheme under the requirements for short-term employee benefits; the Sud scheme under those for other long-term employee benefits.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Both schemes under the requirements for post-employment benefits, since every termination benefit is linked to the end of employment.","es":""},"correct":false,"feedback":{"fr":"","en":"The requirements for post-employment benefits apply only to an enhancement of those benefits, which the case facts rule out (IAS 19, para. 169).","es":""}},{"id":"C","text":{"fr":"","en":"Both schemes under the requirements for short-term employee benefits, since the triggering event occurs in N.","es":""},"correct":false,"feedback":{"fr":"","en":"The timing of full settlement decides, not the date of the triggering event; Sud is not settled within twelve months (IAS 19, para. 169).","es":""}},{"id":"D","text":{"fr":"","en":"The Nord scheme under the requirements for other long-term employee benefits; the Sud scheme under those for short-term employee benefits.","es":""},"correct":false,"feedback":{"fr":"","en":"The requirements are reversed: full settlement within twelve months, as for Nord, points to short-term employee benefits (IAS 19, para. 169).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IAS19.000001":"Four categories of employee benefits — Example: five Aldoran benefits","LX.IAS19.000002":"Four categories of employee benefits — The rule: four categories","LX.IAS19.000003":"Four categories of employee benefits — The rule: four categories","LX.IAS19.000004":"Four categories of employee benefits — The rule: four categories","LX.IAS19.000005":"Four categories of employee benefits — Outside the scope of IAS 19","LX.IAS19.000006":"Four categories of employee benefits — Outside the scope of IAS 19","LX.IAS19.000007":"Short-term benefits: the accrual — The rule: undiscounted amount, expense and liability","LX.IAS19.000008":"Short-term benefits: the accrual — Numeric example: accrued pay and charges","LX.IAS19.000009":"Short-term benefits: the accrual — Numeric example: accrued pay and charges","LX.IAS19.000010":"Short-term benefits: the accrual — The rule: accumulating and non-accumulating absences","LX.IAS19.000011":"Short-term benefits: the accrual — Numeric example: carried-over leave and movement in the liability","LX.IAS19.000012":"Short-term benefits: the accrual — Numeric example: carried-over leave and movement in the liability","LX.IAS19.000013":"Short-term benefits: the accrual — The rule: accumulating and non-accumulating absences","LX.IAS19.000014":"Bonuses and profit-sharing — The rule: obligation and reliable estimate","LX.IAS19.000015":"Bonuses and profit-sharing — Judgement: the constructive obligation","LX.IAS19.000016":"Bonuses and profit-sharing — Numeric example: Ravelin's bonus","LX.IAS19.000017":"Bonuses and profit-sharing — Numeric example: Ravelin's bonus","LX.IAS19.000018":"Bonuses and profit-sharing — The rule: obligation and reliable estimate","LX.IAS19.000019":"Defined contribution or defined benefit — The rule: defined contribution or defined benefit","LX.IAS19.000020":"Defined contribution or defined benefit — The rule: defined contribution or defined benefit","LX.IAS19.000021":"Defined contribution or defined benefit — Accounting for a defined contribution plan","LX.IAS19.000022":"Defined contribution or defined benefit — Numeric example: Pellor's contribution","LX.IAS19.000023":"Defined contribution or defined benefit — Numeric example: Pellor's contribution","LX.IAS19.000024":"Defined contribution or defined benefit — Numeric example: Pellor's contribution","LX.IAS19.000025":"Multi-employer, state and insured plans — Multi-employer plans","LX.IAS19.000026":"Multi-employer, state and insured plans — Example: three year-end situations","LX.IAS19.000027":"Multi-employer, state and insured plans — State plans","LX.IAS19.000028":"Multi-employer, state and insured plans — Insured benefits","LX.IAS19.000029":"Multi-employer, state and insured plans — Example: three year-end situations","LX.IAS19.000031":"The obligation, the assets and the net liability (asset) — Numeric example: a deficit and a surplus","LX.IAS19.000032":"The obligation, the assets and the net liability (asset) — The rule: projected unit credit","LX.IAS19.000033":"The obligation, the assets and the net liability (asset) — The rule: projected unit credit","LX.IAS19.000034":"The obligation, the assets and the net liability (asset) — Numeric example: the present value of the attributed benefit","LX.IAS19.000035":"The obligation, the assets and the net liability (asset) — Attribution to periods of service","LX.IAS19.000036":"The obligation, the assets and the net liability (asset) — Numeric example: the present value of the attributed benefit","LX.IAS19.000037":"Actuarial assumptions, discount rate and plan assets — Understand: two actuaries, two obligations","LX.IAS19.000038":"Actuarial assumptions, discount rate and plan assets — The rule: unbiased, consistent assumptions","LX.IAS19.000039":"Actuarial assumptions, discount rate and plan assets — The rule: the discount rate","LX.IAS19.000040":"Actuarial assumptions, discount rate and plan assets — The rule: the discount rate","LX.IAS19.000041":"Actuarial assumptions, discount rate and plan assets — Numeric example: the effect of a rate change","LX.IAS19.000042":"Actuarial assumptions, discount rate and plan assets — The rule: plan assets at fair value","LX.IAS19.000043":"Actuarial assumptions, discount rate and plan assets — The rule: plan assets at fair value","LX.IAS19.000044":"Actuarial assumptions, discount rate and plan assets — The rule: plan assets at fair value","LX.IAS19.000045":"The asset ceiling and professional cases — Numeric example: Wexil's ceiling","LX.IAS19.000046":"The asset ceiling and professional cases — Numeric example: Wexil's ceiling","LX.IAS19.000047":"The asset ceiling and professional cases — Numeric example: Wexil's ceiling","LX.IAS19.000048":"The asset ceiling and professional cases — Availability of benefits: a right, not an intention","LX.IAS19.000049":"The asset ceiling and professional cases — The rule: the lower of the surplus and the ceiling","LX.IAS19.000050":"The asset ceiling and professional cases — Professional: offsetting and the zero floor","LX.IAS19.000051":"The asset ceiling and professional cases — Professional: minimum funding","LX.IAS19.000052":"The asset ceiling and professional cases — Professional: member contributions","LX.IAS19.000053":"The asset ceiling and professional cases — Professional: member contributions","LX.IAS19.000054":"The asset ceiling and professional cases — Professional: the 2021 agenda decision (context)","LX.IAS19.000055":"The components of cost: service and net interest — The rule: three components","LX.IAS19.000056":"The components of cost: service and net interest — Numeric example: profit or loss and other comprehensive income","LX.IAS19.000057":"The components of cost: service and net interest — The rule: the period's service cost","LX.IAS19.000058":"The components of cost: service and net interest — The rule: the period's service cost","LX.IAS19.000059":"The components of cost: service and net interest — Numeric example and entry: net interest","LX.IAS19.000060":"The components of cost: service and net interest — Numeric example and entry: net interest","LX.IAS19.000061":"The components of cost: service and net interest — Numeric example and entry: net interest","LX.IAS19.000062":"The components of cost: service and net interest — The rule: net interest","LX.IAS19.000063":"Remeasurements, other comprehensive income and reconciliation — The rule: three elements of remeasurement","LX.IAS19.000064":"Remeasurements, other comprehensive income and reconciliation — Numeric example: the assets reconciliation","LX.IAS19.000065":"Remeasurements, other comprehensive income and reconciliation — Numeric example: the obligation reconciliation","LX.IAS19.000066":"Remeasurements, other comprehensive income and reconciliation — Numeric example: the assets reconciliation","LX.IAS19.000067":"Remeasurements, other comprehensive income and reconciliation — Numeric example and entries: the net liability","LX.IAS19.000068":"Remeasurements, other comprehensive income and reconciliation — Numeric example and entries: the net liability","LX.IAS19.000069":"Remeasurements, other comprehensive income and reconciliation — Numeric example and entries: the net liability","LX.IAS19.000070":"Remeasurements, other comprehensive income and reconciliation — The rule: no recycling","LX.IAS19.000071":"Remeasurements, other comprehensive income and reconciliation — The rule: no recycling","LX.IAS19.000072":"Remeasurements, other comprehensive income and reconciliation — The rule: the reconciliation and the balancing item","LX.IAS19.000073":"Remeasurements, other comprehensive income and reconciliation — Numeric example and entries: the net liability","LX.IAS19.000074":"Plan amendment, curtailment and settlement — The rule: remeasure first","LX.IAS19.000075":"Plan amendment, curtailment and settlement — The rule: remeasure first","LX.IAS19.000076":"Plan amendment, curtailment and settlement — Numeric example and entries: Kardane's amendment","LX.IAS19.000077":"Plan amendment, curtailment and settlement — Past service cost","LX.IAS19.000078":"Plan amendment, curtailment and settlement — Numeric example and entries: Kardane's amendment","LX.IAS19.000079":"Plan amendment, curtailment and settlement — Curtailment and settlement","LX.IAS19.000080":"Plan amendment, curtailment and settlement — Numeric example and entries: Kardane's amendment","LX.IAS19.000081":"Plan amendment, curtailment and settlement — Numeric example: the rest of the period","LX.IAS19.000082":"Plan amendment, curtailment and settlement — Curtailment and settlement","LX.IAS19.000083":"Plan amendment, curtailment and settlement — Curtailment and settlement","LX.IAS19.000084":"Other long-term benefits and termination benefits — The rule: everything in profit or loss","LX.IAS19.000085":"Other long-term benefits and termination benefits — The rule: everything in profit or loss","LX.IAS19.000086":"Other long-term benefits and termination benefits — Numeric example and entry: long-service awards","LX.IAS19.000087":"Other long-term benefits and termination benefits — Numeric example and entry: long-service awards","LX.IAS19.000088":"Other long-term benefits and termination benefits — The rule: the earlier of two dates","LX.IAS19.000089":"Other long-term benefits and termination benefits — Numeric example: a voluntary departure offer","LX.IAS19.000090":"Other long-term benefits and termination benefits — Numeric example: a voluntary departure offer","LX.IAS19.000091":"Other long-term benefits and termination benefits — Numeric example: a voluntary departure offer","LX.IAS19.000092":"Other long-term benefits and termination benefits — The boundary with IAS 37","LX.IAS19.000093":"Other long-term benefits and termination benefits — The boundary with IAS 37","LX.IAS19.000094":"Disclosures, sensitivity and follow-up of IFRS 18 — The objective and the three families of information","LX.IAS19.000095":"Disclosures, sensitivity and follow-up of IFRS 18 — Example: four Yarrow disclosures","LX.IAS19.000096":"Disclosures, sensitivity and follow-up of IFRS 18 — Professional: the sensitivity analysis","LX.IAS19.000097":"Disclosures, sensitivity and follow-up of IFRS 18 — Professional: the sensitivity analysis","LX.IAS19.000098":"Disclosures, sensitivity and follow-up of IFRS 18 — Professional: IFRS 18 and IAS 19","QST.IAS19.000001":"Four categories of employee benefits — The rule: four categories","QST.IAS19.000002":"Four categories of employee benefits — The rule: four categories","QST.IAS19.000003":"Four categories of employee benefits — Outside the scope of IAS 19","QST.IAS19.000004":"Short-term benefits: the accrual — The rule: undiscounted amount, expense and liability","QST.IAS19.000005":"Short-term benefits: the accrual — The rule: undiscounted amount, expense and liability","QST.IAS19.000006":"Short-term benefits: the accrual — The rule: accumulating and non-accumulating absences","QST.IAS19.000007":"Short-term benefits: the accrual — The rule: accumulating and non-accumulating absences","QST.IAS19.000008":"Bonuses and profit-sharing — The rule: obligation and reliable estimate","QST.IAS19.000010":"Bonuses and profit-sharing — The rule: obligation and reliable estimate","QST.IAS19.000011":"Defined contribution or defined benefit — The rule: defined contribution or defined benefit","QST.IAS19.000012":"Defined contribution or defined benefit — The rule: defined contribution or defined benefit","QST.IAS19.000014":"Defined contribution or defined benefit — Accounting for a defined contribution plan","QST.IAS19.000015":"Defined contribution or defined benefit — Accounting for a defined contribution plan","QST.IAS19.000016":"Multi-employer, state and insured plans — Multi-employer plans","QST.IAS19.000018":"Multi-employer, state and insured plans — Multi-employer plans","QST.IAS19.000019":"Multi-employer, state and insured plans — Multi-employer plans","QST.IAS19.000020":"The obligation, the assets and the net liability (asset) — The rule: deficit, surplus and net liability (asset)","QST.IAS19.000021":"The obligation, the assets and the net liability (asset) — The rule: deficit, surplus and net liability (asset)","QST.IAS19.000022":"The obligation, the assets and the net liability (asset) — The rule: deficit, surplus and net liability (asset)","QST.IAS19.000023":"The obligation, the assets and the net liability (asset) — The rule: projected unit credit","QST.IAS19.000024":"The obligation, the assets and the net liability (asset) — The rule: projected unit credit","QST.IAS19.000025":"The obligation, the assets and the net liability (asset) — The rule: projected unit credit","QST.IAS19.000026":"The obligation, the assets and the net liability (asset) — Attribution to periods of service","QST.IAS19.000027":"The obligation, the assets and the net liability (asset) — Attribution to periods of service","QST.IAS19.000028":"Actuarial assumptions, discount rate and plan assets — The rule: unbiased, consistent assumptions","QST.IAS19.000029":"Actuarial assumptions, discount rate and plan assets — The rule: unbiased, consistent assumptions","QST.IAS19.000030":"Actuarial assumptions, discount rate and plan assets — The rule: the discount rate","QST.IAS19.000031":"Actuarial assumptions, discount rate and plan assets — The rule: the discount rate","QST.IAS19.000033":"Actuarial assumptions, discount rate and plan assets — The rule: plan assets at fair value","QST.IAS19.000034":"Actuarial assumptions, discount rate and plan assets — The rule: plan assets at fair value","QST.IAS19.000035":"The asset ceiling and professional cases — The rule: the lower of the surplus and the ceiling","QST.IAS19.000037":"The asset ceiling and professional cases — The rule: the lower of the surplus and the ceiling","QST.IAS19.000038":"The asset ceiling and professional cases — The rule: the lower of the surplus and the ceiling","QST.IAS19.000039":"The asset ceiling and professional cases — The rule: the lower of the surplus and the ceiling","QST.IAS19.000040":"The asset ceiling and professional cases — The rule: the lower of the surplus and the ceiling","QST.IAS19.000041":"The asset ceiling and professional cases — Professional: member contributions","QST.IAS19.000043":"The components of cost: service and net interest — The rule: three components","QST.IAS19.000044":"The components of cost: service and net interest — The rule: three components","QST.IAS19.000045":"The components of cost: service and net interest — The rule: three components","QST.IAS19.000046":"The components of cost: service and net interest — The rule: the period's service cost","QST.IAS19.000047":"The components of cost: service and net interest — The rule: the period's service cost","QST.IAS19.000048":"The components of cost: service and net interest — The rule: net interest","QST.IAS19.000049":"The components of cost: service and net interest — The rule: net interest","QST.IAS19.000050":"The components of cost: service and net interest — The rule: net interest","QST.IAS19.000051":"Remeasurements, other comprehensive income and reconciliation — The rule: three elements of remeasurement","QST.IAS19.000052":"Remeasurements, other comprehensive income and reconciliation — The rule: three elements of remeasurement","QST.IAS19.000054":"Remeasurements, other comprehensive income and reconciliation — The rule: no recycling","QST.IAS19.000056":"Remeasurements, other comprehensive income and reconciliation — The rule: the reconciliation and the balancing item","QST.IAS19.000057":"Remeasurements, other comprehensive income and reconciliation — The rule: the reconciliation and the balancing item","QST.IAS19.000059":"Plan amendment, curtailment and settlement — Past service cost","QST.IAS19.000061":"Plan amendment, curtailment and settlement — Past service cost","QST.IAS19.000062":"Plan amendment, curtailment and settlement — Curtailment and settlement","QST.IAS19.000064":"Plan amendment, curtailment and settlement — Curtailment and settlement","QST.IAS19.000066":"Plan amendment, curtailment and settlement — The rule: remeasure first","QST.IAS19.000069":"The components of cost: service and net interest — The rule: three components","QST.IAS19.000071":"Other long-term benefits and termination benefits — The rule: the earlier of two dates","QST.IAS19.000072":"Other long-term benefits and termination benefits — The rule: the earlier of two dates","QST.IAS19.000074":"Disclosures, sensitivity and follow-up of IFRS 18 — The objective and the three families of information","QST.IAS19.000075":"Disclosures, sensitivity and follow-up of IFRS 18 — Professional: the sensitivity analysis","QST.IAS19.000076":"Other long-term benefits and termination benefits — The rule: the earlier of two dates","QST.IAS19.000077":"The components of cost: service and net interest — The rule: three components","QST.IAS19.000078":"Defined contribution or defined benefit — The rule: defined contribution or defined benefit","QST.IAS19.000079":"Actuarial assumptions, discount rate and plan assets — The rule: unbiased, consistent assumptions","QST.IAS19.000080":"Plan amendment, curtailment and settlement — Past service cost","QST.IAS19.000081":"Plan amendment, curtailment and settlement — Curtailment and settlement","QST.IAS19.000082":"Four categories of employee benefits — The rule: four categories","QST.IAS19.000083":"Other long-term benefits and termination benefits — The rule: the earlier of two dates"}}