CERTYNEX IFRS ACADEMY

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?

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.

Recognise nothing, because a plan run by the State is outside the scope of employee benefits and does not concern the employer's accounts.

Recognise a liability for the future pensions of all Verane employees, since the State guarantees the plan on the employer's behalf.

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.