CERTYNEX IFRS ACADEMY

A pension fund is set up for the benefit of the employees of Lumen Services, a subsidiary of the Lumen group. Lumen Services prepares financial statements. How should this fund be analysed?

The fund is not a related party, because a plan is not an entity.

The fund is a post-employment benefit plan for the benefit of the entity's employees: it is a related party of Lumen Services.

The fund is a related party provided Lumen Services is its sponsoring employer and itself funds the contributions paid into the plan.

The fund is a related party when it is a defined benefit plan.