Some years ago, Wattle Ltd established a defined benefit superannuation plan for its employees
Accounting for defined benefit superannuation plans Some years ago, Wattle Ltd established a defined benefit superannuation plan for its employees. The company has since introduced a defined contribution plan, which all new staff join when commencing employment with Wattle Ltd. Although the defined benefit plan is now closed to new recruits, the fund continues to provide for employees who have been with the company for a long time. The following actuarial report has been received for the defined benefit plan: 2016 $ Present value of the defined benefit obligation 1 Jan. 20000000 Past service cost 2000000 Net interest ? Current service cost 800000 Benefits paid 2100000 Actuarial loss on DBO 100000 Present value of the defined benefit obligation 31 Dec.…
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