At 31 December, the plan of Pelvane SA shows an obligation of 10,900,000 (present value) and plan assets with a fair value of 12,400,000. The present value of the economic benefits available as reductions in future contributions, discounted at the plan's discount rate, is 1,000,000; 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.
- Present value of the obligation
- 10,900,000
- Fair value of plan assets
- 12,400,000
- Asset ceiling (present value of the economic benefits available)
- 1,000,000