The net defined benefit liability of Maurel SA was 5,400,000 at the start of the year. On 1 July, Maurel paid a contribution of 900,000 into the plan fund, which reduces the net liability; there is no other movement. As a case convention, the contribution is taken into account for the time remaining in the year, that is 50 % of the year. The discount rate at the start of the year is 4 %. Calculate the adjusted base of the net liability, then net interest for the year.
- Net liability at the start of the year
- 5,400,000
- Contribution paid into the fund on 1 July
- 900,000
- Share of the year remaining after the contribution (case convention)
- 50 %
- Discount rate at the start of the year (case data)
- 4 %