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WorkpaperIAS 19 — Employee BenefitsL2 · L3 · L4

Cost of a defined benefit plan: reconciliation of the obligation and the assets, profit or loss, other comprehensive income and remeasurement as a balancing item

2 missions10 sections to document120 min

Prepared by: AI-assisted draft
Reviewed by: Not reviewed — human review required
Status: Published

Objective of the workpaper

Reconcile the obligation and the plan assets from the opening to the closing balance. Net interest follows IAS 19 (start-of-year rate on the opening net liability, flows at year end by case convention); the remeasurements are the differences between the closing balances supplied and the balances computed. Actuarial assumptions, rate and attribution are case data; their choice remains a supported judgment.

10 sections · 44 blocks · 16 calculations · 4 entries

IAS 19 §8
IAS 19 §70
IAS 19 §83

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File and entity

Defined benefit plan over a year: service cost, net interest, reconciliations of the obligation and the assets, remeasurement as a balancing item and entries

Case tasks documented here

Compute the benefit attributed to the year.
Compute the service cost of the year.
Compute the opening net liability.
Compute the interest on the opening obligation.
Compute the interest income on the plan assets.
Compute the net interest of the year.
Reconcile the obligation and determine the actuarial loss as a balancing item.
Compute the return on the assets excluding interest from the actual return.
Reconcile the assets and determine, as a balancing item, the gain excluding interest.
Compute the cost of the year in profit or loss.
Compute the net remeasurement in other comprehensive income.
Compute the closing net liability.
Record the service cost.
Record the net interest.
Record the net remeasurement in other comprehensive income.
Record the employer contribution to the fund.

Facts and data

Inputs

Plan: members, benefit formula, funding and date of the events of the year
TextRequired
DEFINED_BENEFIT_PENSION_PLAN_FUNDED_THROUGH_A_SEPARATE_FUND_WITH_NO_PLAN_CHANGE_IN_THE_YEAR
Actuarial assumptions of the actuary (discount rate, salaries, mortality, turnover)
Text
ACTUARIAL_ASSUMPTIONS_AND_DISCOUNT_RATE_GIVEN_BY_THE_ACTUARY_AND_MANAGEMENT
Defined benefit obligation at the opening date
Number
5,000,000
Fair value of the plan assets at the opening date
Number
4,200,000
Closing obligation reported by the actuary
Number
5,298,908.97
Closing fair value of the plan assets reported by the fund manager
Number
4,611,500
Discount rate at the start of the year (case data)
Number
6 %
Projected benefit at the settlement date (actuary data)
Number
9,000,000
Share of the benefit attributed to the year (case convention)
Number
4 %
Number of discounting years until settlement (case data)
Number
12 years
Benefits paid by the plan during the year
Number
310,000
Contributions paid by the employer to the fund
Number
420,000
Actual return on the plan assets (interest included)
Number
301,500
Alternative discount rate for the sensitivity (optional)
Number

Supporting documents

Evidence

Documents obtained and referenced (actuary report, fund manager statement, plan rules)
EvidenceRequired

Analysis: components of the cost and treatment

Analysis

IAS 19 §8IAS 19 §70IAS 19 §83

Points examined: components of the defined benefit cost
ChecklistRequired
- Deficit (surplus) = obligation − fair value of the assets
- Rate set by reference to yields on high quality corporate bonds
- Current service cost in profit or loss
- Net interest on the net liability (asset) in profit or loss, under IAS 19
- Remeasurements in other comprehensive income, never reclassified to profit or loss
- Attribution of the benefit to periods of service applied consistently

Calculations

IAS 19 §8IAS 19 §70IAS 19 §83

Benefit attributed to the year (projected benefit × attributed share)
Calculation
360,000
Projected benefit at the settlement date (actuary data) ; Share of the benefit attributed to the year (case convention)
Current service cost (present value of the attributed benefit)
Calculation
178,908.97
Benefit attributed to the year (projected benefit × attributed share) ; Discount rate at the start of the year (case data) ; Number of discounting years until settlement (case data)
Present value of the attributed benefit at the alternative rate (sensitivity)
Calculation
Benefit attributed to the year (projected benefit × attributed share) ; Alternative discount rate for the sensitivity (optional) ; Number of discounting years until settlement (case data)
Effect of the change of rate on the service cost (value at the new rate − value at the initial rate)
Calculation
-178,908.97
Present value of the attributed benefit at the alternative rate (sensitivity) ; − Current service cost (present value of the attributed benefit)
Net liability (asset) at the opening date (obligation − assets)
Calculation
800,000
Defined benefit obligation at the opening date ; − Fair value of the plan assets at the opening date
Net liability (asset) at the closing date (obligation − assets)
Calculation
687,408.97
Closing obligation reported by the actuary ; − Closing fair value of the plan assets reported by the fund manager
Interest on the obligation (opening obligation × rate)
Calculation
300,000
Defined benefit obligation at the opening date ; Discount rate at the start of the year (case data)
Interest income on the assets (opening fair value × same rate)
Calculation
252,000
Fair value of the plan assets at the opening date ; Discount rate at the start of the year (case data)
Net interest (opening net liability × start-of-year rate, IAS 19)
Calculation
48,000
Net liability (asset) at the opening date (obligation − assets) ; Discount rate at the start of the year (case data)
Closing obligation computed (opening + service cost + interest − benefits)
Calculation
5,168,908.97
Defined benefit obligation at the opening date ; Closing obligation reported by the actuary ; Current service cost (present value of the attributed benefit) ; Interest on the obligation (opening obligation × rate) ; − Benefits paid by the plan during the year
Actuarial loss (gain): obligation reported − obligation computed
Calculation
130,000
Defined benefit obligation at the opening date ; Closing obligation reported by the actuary ; Current service cost (present value of the attributed benefit) ; Interest on the obligation (opening obligation × rate) ; − Benefits paid by the plan during the year
Return on the assets excluding interest (actual return − interest income)
Calculation
49,500
Actual return on the plan assets (interest included) ; − Interest income on the assets (opening fair value × same rate)
Closing fair value computed (opening + interest + contributions − benefits)
Calculation
4,562,000
Fair value of the plan assets at the opening date ; Closing fair value of the plan assets reported by the fund manager ; Interest income on the assets (opening fair value × same rate) ; Contributions paid by the employer to the fund ; − Benefits paid by the plan during the year
Gain (loss) on the assets excluding interest: fair value reported − fair value computed
Calculation
49,500
Fair value of the plan assets at the opening date ; Closing fair value of the plan assets reported by the fund manager ; Interest income on the assets (opening fair value × same rate) ; Contributions paid by the employer to the fund ; − Benefits paid by the plan during the year
Cost in profit or loss (service cost + net interest)
Calculation
226,908.97
Current service cost (present value of the attributed benefit) ; Net interest (opening net liability × start-of-year rate, IAS 19)
Net remeasurement in other comprehensive income (actuarial loss − gain on the assets)
Calculation
80,500
Actuarial loss (gain): obligation reported − obligation computed ; − Return on the assets excluding interest (actual return − interest income)

Illustrative entries

Entries

Current service cost
Entry
Account Debit Credit
Employee benefit expense 178,908.97
Net defined benefit liability 178,908.97
Net interest on the net liability
Entry
Account Debit Credit
Net interest expense 48,000
Net defined benefit liability 48,000
Net remeasurement loss in other comprehensive income
Entry
Account Debit Credit
Remeasurements (other comprehensive income) 80,500
Net defined benefit liability 80,500
Employer contributions to the fund
Entry
Account Debit Credit
Net defined benefit liability 420,000
Cash paid 420,000

Account	Debit	Credit
Employee benefit expense	178,908.97
Net defined benefit liability		178,908.97

Account	Debit	Credit
Net interest expense	48,000
Net defined benefit liability		48,000

Account	Debit	Credit
Remeasurements (other comprehensive income)	80,500
Net defined benefit liability		80,500

Account	Debit	Credit
Net defined benefit liability	420,000
Cash paid		420,000

Judgments: actuarial assumptions and attribution

Judgment

IAS 19 §8IAS 19 §70IAS 19 §83

Are the actuary's assumptions consistent and is the discount rate supported?
JudgmentRequired
Assumptions consistent and rate supported
Assumptions consistent and rate supported / Assumptions or rate to be supported before concluding
Professional judgment: assumptions are estimates of the entity; in the case they are given by the actuary and are not imposed by the standard.
Rationale: source of the rate, consistency of the assumptions with each other and with the prior year
Text
THE_RATE_IS_THE_YIELD_ON_HIGH_QUALITY_CORPORATE_BONDS_OF_COMPARABLE_TERM
Is the benefit attributed to periods of service according to the plan formula?
JudgmentRequired
Linear attribution retained for the case (pedagogical assumption)
Linear attribution retained for the case (pedagogical assumption) / Plan formula to be analysed before choosing the attribution
Professional judgment: linear attribution is here a case convention, never presented as imposed by the standard.
Rationale: plan formula and service period retained
Text
LINEAR_ATTRIBUTION_IS_A_CASE_CONVENTION_ONE_YEAR_OUT_OF_TWENTY_FIVE

Information to prepare for the notes

Disclosure

IAS 19 §8IAS 19 §70IAS 19 §83

Information: reconciliations and components
Checklist
- Reconciliation of the obligation from opening to closing
- Reconciliation of the fair value of the plan assets
- Components recognised in profit or loss and in other comprehensive income
- Principal actuarial assumptions

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Conclusion

Conclusion: cost in profit or loss, remeasurement in other comprehensive income and closing net liability
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Plan facts recordedPass
Judgment on the assumptions recordedPass
Judgment on the attribution recordedPass
Return excluding interest = asset reconciliation differencePass
Cost in profit or loss = service cost + net interestPass
Service cost entry balancedPass
Net interest entry balancedPass
Remeasurement entry balancedPass
Contribution entry balancedPass

Assets: -420,000
Liabilities: -112,591.03
Profit or loss: -226,908.97
OCI: -80,500
Equity: -307,408.97

File and entity

Year-end employee benefits file: plan classification, short-term benefits, cost of a defined benefit plan, plan event and asset ceiling

Case tasks documented here

How is the net liability of the managers plan defined, and how is the cost split between profit or loss and other comprehensive income?
Compute the benefit attributed to the year.
Compute the service cost of the year.
Compute the opening net liability.
Compute the interest on the opening obligation.
Compute the interest income on the plan assets.
Compute the net interest of the year.
Reconcile the obligation and determine the actuarial loss as a balancing item.
Compute the return on the assets excluding interest from the actual return.
Reconcile the assets and determine, as a balancing item, the gain excluding interest.
Compute the cost of the managers plan in profit or loss.
Compute the net remeasurement in other comprehensive income.
Compute the closing net liability of the managers plan.
Record the service cost.
Record the net interest.
Record the net remeasurement in other comprehensive income.
Record the employer contribution to the managers fund.
Are the actuarial assumptions supported, and is linear attribution retained?

Facts and data

Inputs

Plan: members, benefit formula, funding and date of the events of the year
TextRequired
DEFINED_BENEFIT_PENSION_PLAN_FUNDED_THROUGH_A_SEPARATE_FUND_WITH_NO_PLAN_CHANGE_IN_THE_YEAR
Actuarial assumptions of the actuary (discount rate, salaries, mortality, turnover)
Text
ACTUARIAL_ASSUMPTIONS_AND_DISCOUNT_RATE_GIVEN_BY_THE_ACTUARY
Defined benefit obligation at the opening date
Number
8,000,000
Fair value of the plan assets at the opening date
Number
6,900,000
Closing obligation reported by the actuary
Number
8,255,756.58
Closing fair value of the plan assets reported by the fund manager
Number
7,380,000
Discount rate at the start of the year (case data)
Number
5 %
Projected benefit at the settlement date (actuary data)
Number
5,400,000
Share of the benefit attributed to the year (case convention)
Number
5 %
Number of discounting years until settlement (case data)
Number
10 years
Benefits paid by the plan during the year
Number
520,000
Contributions paid by the employer to the fund
Number
600,000
Actual return on the plan assets (interest included)
Number
400,000
Alternative discount rate for the sensitivity (optional)
Number

Supporting documents

Evidence

Documents obtained and referenced (actuary report, fund manager statement, plan rules)
EvidenceRequired

Analysis: components of the cost and treatment

Analysis

IAS 19 §8IAS 19 §70IAS 19 §83

Points examined: components of the defined benefit cost
ChecklistRequired
- Deficit (surplus) = obligation − fair value of the assets
- Rate set by reference to yields on high quality corporate bonds
- Current service cost in profit or loss
- Net interest on the net liability (asset) in profit or loss, under IAS 19
- Remeasurements in other comprehensive income, never reclassified to profit or loss
- Attribution of the benefit to periods of service applied consistently

Calculations

IAS 19 §8IAS 19 §70IAS 19 §83

Benefit attributed to the year (projected benefit × attributed share)
Calculation
270,000
Projected benefit at the settlement date (actuary data) ; Share of the benefit attributed to the year (case convention)
Current service cost (present value of the attributed benefit)
Calculation
165,756.58
Benefit attributed to the year (projected benefit × attributed share) ; Discount rate at the start of the year (case data) ; Number of discounting years until settlement (case data)
Present value of the attributed benefit at the alternative rate (sensitivity)
Calculation
Benefit attributed to the year (projected benefit × attributed share) ; Alternative discount rate for the sensitivity (optional) ; Number of discounting years until settlement (case data)
Effect of the change of rate on the service cost (value at the new rate − value at the initial rate)
Calculation
-165,756.58
Present value of the attributed benefit at the alternative rate (sensitivity) ; − Current service cost (present value of the attributed benefit)
Net liability (asset) at the opening date (obligation − assets)
Calculation
1,100,000
Defined benefit obligation at the opening date ; − Fair value of the plan assets at the opening date
Net liability (asset) at the closing date (obligation − assets)
Calculation
875,756.58
Closing obligation reported by the actuary ; − Closing fair value of the plan assets reported by the fund manager
Interest on the obligation (opening obligation × rate)
Calculation
400,000
Defined benefit obligation at the opening date ; Discount rate at the start of the year (case data)
Interest income on the assets (opening fair value × same rate)
Calculation
345,000
Fair value of the plan assets at the opening date ; Discount rate at the start of the year (case data)
Net interest (opening net liability × start-of-year rate, IAS 19)
Calculation
55,000
Net liability (asset) at the opening date (obligation − assets) ; Discount rate at the start of the year (case data)
Closing obligation computed (opening + service cost + interest − benefits)
Calculation
8,045,756.58
Defined benefit obligation at the opening date ; Closing obligation reported by the actuary ; Current service cost (present value of the attributed benefit) ; Interest on the obligation (opening obligation × rate) ; − Benefits paid by the plan during the year
Actuarial loss (gain): obligation reported − obligation computed
Calculation
210,000
Defined benefit obligation at the opening date ; Closing obligation reported by the actuary ; Current service cost (present value of the attributed benefit) ; Interest on the obligation (opening obligation × rate) ; − Benefits paid by the plan during the year
Return on the assets excluding interest (actual return − interest income)
Calculation
55,000
Actual return on the plan assets (interest included) ; − Interest income on the assets (opening fair value × same rate)
Closing fair value computed (opening + interest + contributions − benefits)
Calculation
7,325,000
Fair value of the plan assets at the opening date ; Closing fair value of the plan assets reported by the fund manager ; Interest income on the assets (opening fair value × same rate) ; Contributions paid by the employer to the fund ; − Benefits paid by the plan during the year
Gain (loss) on the assets excluding interest: fair value reported − fair value computed
Calculation
55,000
Fair value of the plan assets at the opening date ; Closing fair value of the plan assets reported by the fund manager ; Interest income on the assets (opening fair value × same rate) ; Contributions paid by the employer to the fund ; − Benefits paid by the plan during the year
Cost in profit or loss (service cost + net interest)
Calculation
220,756.58
Current service cost (present value of the attributed benefit) ; Net interest (opening net liability × start-of-year rate, IAS 19)
Net remeasurement in other comprehensive income (actuarial loss − gain on the assets)
Calculation
155,000
Actuarial loss (gain): obligation reported − obligation computed ; − Return on the assets excluding interest (actual return − interest income)

Illustrative entries

Entries

Current service cost
Entry
Account Debit Credit
Employee benefit expense 165,756.58
Net defined benefit liability 165,756.58
Net interest on the net liability
Entry
Account Debit Credit
Net interest expense 55,000
Net defined benefit liability 55,000
Net remeasurement loss in other comprehensive income
Entry
Account Debit Credit
Remeasurements (other comprehensive income) 155,000
Net defined benefit liability 155,000
Employer contributions to the fund
Entry
Account Debit Credit
Net defined benefit liability 600,000
Cash paid 600,000

Account	Debit	Credit
Employee benefit expense	165,756.58
Net defined benefit liability		165,756.58

Account	Debit	Credit
Net interest expense	55,000
Net defined benefit liability		55,000

Account	Debit	Credit
Remeasurements (other comprehensive income)	155,000
Net defined benefit liability		155,000

Account	Debit	Credit
Net defined benefit liability	600,000
Cash paid		600,000

Judgments: actuarial assumptions and attribution

Judgment

IAS 19 §8IAS 19 §70IAS 19 §83

Are the actuary's assumptions consistent and is the discount rate supported?
JudgmentRequired
Assumptions consistent and rate supported
Assumptions consistent and rate supported / Assumptions or rate to be supported before concluding
Professional judgment: assumptions are estimates of the entity; in the case they are given by the actuary and are not imposed by the standard.
Rationale: source of the rate, consistency of the assumptions with each other and with the prior year
Text
THE_RATE_IS_THE_YIELD_ON_HIGH_QUALITY_CORPORATE_BONDS_OF_COMPARABLE_TERM
Is the benefit attributed to periods of service according to the plan formula?
JudgmentRequired
Linear attribution retained for the case (pedagogical assumption)
Linear attribution retained for the case (pedagogical assumption) / Plan formula to be analysed before choosing the attribution
Professional judgment: linear attribution is here a case convention, never presented as imposed by the standard.
Rationale: plan formula and service period retained
Text
LINEAR_ATTRIBUTION_IS_A_CASE_CONVENTION_ONE_YEAR_OUT_OF_TWENTY

Information to prepare for the notes

Disclosure

IAS 19 §8IAS 19 §70IAS 19 §83

Information: reconciliations and components
Checklist
- Reconciliation of the obligation from opening to closing
- Reconciliation of the fair value of the plan assets
- Components recognised in profit or loss and in other comprehensive income
- Principal actuarial assumptions

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Conclusion

Conclusion: cost in profit or loss, remeasurement in other comprehensive income and closing net liability
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References

Checks and financial statement impact

Plan facts recordedPass
Judgment on the assumptions recordedPass
Judgment on the attribution recordedPass
Return excluding interest = asset reconciliation differencePass
Cost in profit or loss = service cost + net interestPass
Service cost entry balancedPass
Net interest entry balancedPass
Remeasurement entry balancedPass
Contribution entry balancedPass

Assets: -600,000
Liabilities: -224,243.42
Profit or loss: -220,756.58
OCI: -155,000
Equity: -375,756.58

Facts and data

Inputs

Plan: members, benefit formula, funding and date of the events of the year
TextRequired
Actuarial assumptions of the actuary (discount rate, salaries, mortality, turnover)
Text
Defined benefit obligation at the opening date
Number
Fair value of the plan assets at the opening date
Number
Closing obligation reported by the actuary
Number
Closing fair value of the plan assets reported by the fund manager
Number
Discount rate at the start of the year (case data)
Number
Projected benefit at the settlement date (actuary data)
Number
Share of the benefit attributed to the year (case convention)
Number
Number of discounting years until settlement (case data)
Number
Benefits paid by the plan during the year
Number
Contributions paid by the employer to the fund
Number
Actual return on the plan assets (interest included)
Number
Alternative discount rate for the sensitivity (optional)
Number

Supporting documents

Evidence

Documents obtained and referenced (actuary report, fund manager statement, plan rules)
EvidenceRequired

Analysis: components of the cost and treatment

Analysis

IAS 19 §8IAS 19 §70IAS 19 §83

Points examined: components of the defined benefit cost
ChecklistRequired
- Deficit (surplus) = obligation − fair value of the assets
- Rate set by reference to yields on high quality corporate bonds
- Current service cost in profit or loss
- Net interest on the net liability (asset) in profit or loss, under IAS 19
- Remeasurements in other comprehensive income, never reclassified to profit or loss
- Attribution of the benefit to periods of service applied consistently

Calculations

IAS 19 §8IAS 19 §70IAS 19 §83

Benefit attributed to the year (projected benefit × attributed share)
Calculation
Projected benefit at the settlement date (actuary data) ; Share of the benefit attributed to the year (case convention)
Current service cost (present value of the attributed benefit)
Calculation
Benefit attributed to the year (projected benefit × attributed share) ; Discount rate at the start of the year (case data) ; Number of discounting years until settlement (case data)
Present value of the attributed benefit at the alternative rate (sensitivity)
Calculation
Benefit attributed to the year (projected benefit × attributed share) ; Alternative discount rate for the sensitivity (optional) ; Number of discounting years until settlement (case data)
Effect of the change of rate on the service cost (value at the new rate − value at the initial rate)
Calculation
Present value of the attributed benefit at the alternative rate (sensitivity) ; − Current service cost (present value of the attributed benefit)
Net liability (asset) at the opening date (obligation − assets)
Calculation
Defined benefit obligation at the opening date ; − Fair value of the plan assets at the opening date
Net liability (asset) at the closing date (obligation − assets)
Calculation
Closing obligation reported by the actuary ; − Closing fair value of the plan assets reported by the fund manager
Interest on the obligation (opening obligation × rate)
Calculation
Defined benefit obligation at the opening date ; Discount rate at the start of the year (case data)
Interest income on the assets (opening fair value × same rate)
Calculation
Fair value of the plan assets at the opening date ; Discount rate at the start of the year (case data)
Net interest (opening net liability × start-of-year rate, IAS 19)
Calculation
Net liability (asset) at the opening date (obligation − assets) ; Discount rate at the start of the year (case data)
Closing obligation computed (opening + service cost + interest − benefits)
Calculation
Defined benefit obligation at the opening date ; Closing obligation reported by the actuary ; Current service cost (present value of the attributed benefit) ; Interest on the obligation (opening obligation × rate) ; − Benefits paid by the plan during the year
Actuarial loss (gain): obligation reported − obligation computed
Calculation
Defined benefit obligation at the opening date ; Closing obligation reported by the actuary ; Current service cost (present value of the attributed benefit) ; Interest on the obligation (opening obligation × rate) ; − Benefits paid by the plan during the year
Return on the assets excluding interest (actual return − interest income)
Calculation
Actual return on the plan assets (interest included) ; − Interest income on the assets (opening fair value × same rate)
Closing fair value computed (opening + interest + contributions − benefits)
Calculation
Fair value of the plan assets at the opening date ; Closing fair value of the plan assets reported by the fund manager ; Interest income on the assets (opening fair value × same rate) ; Contributions paid by the employer to the fund ; − Benefits paid by the plan during the year
Gain (loss) on the assets excluding interest: fair value reported − fair value computed
Calculation
Fair value of the plan assets at the opening date ; Closing fair value of the plan assets reported by the fund manager ; Interest income on the assets (opening fair value × same rate) ; Contributions paid by the employer to the fund ; − Benefits paid by the plan during the year
Cost in profit or loss (service cost + net interest)
Calculation
Current service cost (present value of the attributed benefit) ; Net interest (opening net liability × start-of-year rate, IAS 19)
Net remeasurement in other comprehensive income (actuarial loss − gain on the assets)
Calculation
Actuarial loss (gain): obligation reported − obligation computed ; − Return on the assets excluding interest (actual return − interest income)

Illustrative entries

Entries

Current service cost
Entry
Debit Employee benefit expense ← Current service cost (present value of the attributed benefit) ; Credit Net defined benefit liability ← Current service cost (present value of the attributed benefit)
Net interest on the net liability
Entry
Debit Net interest expense ← Net interest (opening net liability × start-of-year rate, IAS 19) ; Credit Net defined benefit liability ← Net interest (opening net liability × start-of-year rate, IAS 19)
Net remeasurement loss in other comprehensive income
Entry
Debit Remeasurements (other comprehensive income) ← Net remeasurement in other comprehensive income (actuarial loss − gain on the assets) ; Credit Net defined benefit liability ← Net remeasurement in other comprehensive income (actuarial loss − gain on the assets)
Employer contributions to the fund
Entry
Debit Net defined benefit liability ← Contributions paid by the employer to the fund ; Credit Cash paid ← Contributions paid by the employer to the fund

Judgments: actuarial assumptions and attribution

Judgment

IAS 19 §8IAS 19 §70IAS 19 §83

Are the actuary's assumptions consistent and is the discount rate supported?
JudgmentRequired
Assumptions consistent and rate supported / Assumptions or rate to be supported before concluding
Professional judgment: assumptions are estimates of the entity; in the case they are given by the actuary and are not imposed by the standard.
Rationale: source of the rate, consistency of the assumptions with each other and with the prior year
Text
Is the benefit attributed to periods of service according to the plan formula?
JudgmentRequired
Linear attribution retained for the case (pedagogical assumption) / Plan formula to be analysed before choosing the attribution
Professional judgment: linear attribution is here a case convention, never presented as imposed by the standard.
Rationale: plan formula and service period retained
Text

Information to prepare for the notes

Disclosure

IAS 19 §8IAS 19 §70IAS 19 §83

Information: reconciliations and components
Checklist
- Reconciliation of the obligation from opening to closing
- Reconciliation of the fair value of the plan assets
- Components recognised in profit or loss and in other comprehensive income
- Principal actuarial assumptions

Effect on the financial statements

FS impact

Effect derived from the entries
Table

Conclusion

Conclusion: cost in profit or loss, remeasurement in other comprehensive income and closing net liability
ConclusionRequired

Normative references

References

Normative references cited in this workpaper
References