CERTYNEX IFRS ACADEMY

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?

A net liability of 450,000: the difference between the obligation and the assets is presented as a liability, whatever its sign.

A net liability of 7,850,000, the gross obligation, with the plan assets presented separately in Corvane's statement of financial position.

A net asset of 600,000, equal to the asset ceiling, which limits the net asset even when the surplus is smaller.

A net asset of 450,000, equal to the plan surplus, which is lower than the asset ceiling of 600,000.