Part B Wonderful Berhad, a Malaysian listed company, offers an attractive post-employment benefit to the employees on 1

[answerhappygod]

Part B Wonderful Berhad A Malaysian Listed Company Offers An Attractive Post Employment Benefit To The Employees On 1 1 (118.22 KiB) Viewed 47 times

Part B Wonderful Berhad, a Malaysian listed company, offers an attractive post-employment benefit to the employees on 1 April 2016 as part of the staff retention initiative. The financial year end is 31 March annually. On 31 March 2017, Wonderful Berhad estimated that its present obligation on a defined benefit scheme was RM8,000,000 using a 10% discount rate. The company contributed the same amount to a third party to manage its plan asset. On 31 March 2018, the actuaries estimated that the return on plan assets will be 15% and the present obligation is RM14,400,000. The current service cost is RM8,200,000 and contribution to the plan assets is RM7,000,000. The fair value of the plan assets at the end on 31 March 2018 is RM13,000,000. 2 employers retired and RM4,000 is paid. Contributions to the fund and benefits are paid at the end of the year. Required: In compliance with MFRS 119: Employee Benefits: a) Measure the obligation and plan assets as at 31 March 2018. (6 marks) b) Explain the recognition of obligation and plan assets in (a) by illustrating the journal entries for the year ended 31 March 2017 and 31 March 2018.