Valdor SA settles the rights of a group of members for a price of 8,075,000, whereas the corresponding obligation, remeasured at the settlement date using current assumptions, is 7,920,000. As a case convention, the entry shows only the net effect on the net liability (the movements of the settled obligation and assets offset each other). Post the entry for the settlement loss.
- Obligation settled, remeasured at the settlement date
- 7,920,000
- Settlement price
- 8,075,000