Question 1: Contact Details PLC . The following information is given about a funded defined benefit plan given to employ

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Question 1 Contact Details Plc The Following Information Is Given About A Funded Defined Benefit Plan Given To Employ 1 (80.36 KiB) Viewed 36 times

Question 1: Contact Details PLC . The following information is given about a funded defined benefit plan given to employees by the above company who operate in the dating agency industry. To keep the computations simple, all transactions are assumed to occur at the year end. The present value of the obligation was $990 million and the market value of the plan assets was $1,000 million at 1 January year one. Actuarial gains and losses are to be recognised as they occur outside the profit and loss in other comprehensive income. Question 1: Contact Details PLC . • Year One Two Three $m $m $m . Current service cost 130 140 150 Benefits paid 150 180 190 Contributions paid 90 100 110 . Present value of obligations at 31 Dec. 1,100 1,380 1,408 . Question 1: Contact Details PLC • Market value of plan • assets at 31 Dec 1,190 1,372 1,188 • Discount rate at start of year 10% 9% 8% Expected rate of return on plan assets at start of year (ignore this!!) 12% 11% 10% 00% > Requirea: .