CERTYNEX IFRS ACADEMY

A trainee calculates the net interest of a defined benefit plan for the year. Which of his steps is wrong?

I calculate interest income on assets at 6% (expected return) and interest on the obligation at 3.5%.

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.

I adjust the net liability base for contributions and benefits paid during the period, when they change that net liability.

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.