CERTYNEX IFRS ACADEMY

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?

He projects the benefit expected at retirement using the salary and leaving assumptions that the actuary provides in the case.

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.

He discounts the total benefit expected at retirement, calculated over thirty years of service, and takes that amount as the obligation today.

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.