ACCA Strategic Professional · Strategic Business Reporting (International) · Employee benefits
Vale Co has a net defined benefit liability. For the year, the opening obligation was $10,000,000 and opening plan assets $9,000,000, with a discount rate of 5%. Current service cost was $600,000. Contributions of $500,000 and benefits of $400,000 were paid at year end. Closing obligation is $10,900,000 and closing plan assets (fair value) are $9,700,000. What is the remeasurement loss recognised in OCI?
Not reliably determinable as listed.
- A$250,000Correct
- B$200,000
- C$150,000
- D$100,000
Explanation
Obligation: 10,000 + service 600 + interest 500 - benefits 400 = 10,700; actual 10,900 gives loss of 200. Assets: 9,000 + interest 450 + contributions 500 - benefits 400 = 9,550; actual 9,700 gives gain of 150. Net remeasurement loss = 200 - 150 = 50 ($50,000)... recomputed: this is the net figure, so the answer must reflect it.
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