2007年12月ACCACorporateReporting(P2)考题解析sectionB.doc

Section B – TWO questions ONLY to be attempted 2． Macaljoy, a public limited company, is a leading support services company which focuses on the building industry. The company would like advice on how to treat certain items under IAS19, ‘Employee Benefits’ and IAS37 ‘Provisions,Contingent Liabilities and Contingent Assets’. The company operates the Macaljoy (2006) Pension Plan which commenced on 1 November 2006 and the Macaljoy (1990) Pension Plan, which was closed to new entrants from 31 October 2006, but which was open to future service accrual for the employees already in the scheme. The assets of the schemes are held separately from those of the company in funds under the control of trustees. The following information relates to the two schemes: Macaljoy (1990) Pension Plan The terms of the plan are as follows: (i) employees contribute 6% of their salaries to the plan (ii) Macaljoy contributes, currently, the same amount to the plan for the benefit of the employees (iii) On retirement, employees are guaranteed a pension which is based upon the number of years service with the company and their final salary The following details relate to the plan in the year to 31 October 2007: $m Present value of obligation at 1 November 2006 200 Present value of obligation at 31 October 2007 240 Fair value of plan assets at 1 November 2006 190 Fair value of plan assets at 31 October 2007 225 Current service cost 20 Pension benefits paid 19 Total contributions paid to the scheme for year to 31 October 2007 17 Actuarial gains and losses are recognised in the ‘statement of recognised income and expense’. Macaljoy (2006) Pension Plan Under the terms of the plan, Macaljoy does not guarantee any return on the contributions paid into the fund. The company’s legal and constructive obligation is limited to the amount that is contributed to the fund. The following details relate to this scheme: $m Fair value of