Blue Sky Berhad is a Malaysian listed company that engages in the business of manufacturing electrical equipment. The fi

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Blue Sky Berhad Is A Malaysian Listed Company That Engages In The Business Of Manufacturing Electrical Equipment The Fi 1 (115.32 KiB) Viewed 45 times

Blue Sky Berhad is a Malaysian listed company that engages in the business of manufacturing electrical equipment. The financial year end is 31 December annually. As at 31 December 2016, Blue Sky Berhad estimated that its present obligation on a defined benefit scheme was RM 8 million using a 12% discount rate. The same amount was contributed into the plan assets. As at 31 December 2017, the actuarist informed that the return on plan assets was 15% and the present obligation is RM14.4 million. The current service cost is RM8.2 million and contribution to the plan assets is RM7 million. The fair value of the plan assets as at 31 December 2017 is RM13 million. During year 2017, Blue Sky Berhad paid RM4 million to the retired staff. Contributions to the fund and benefits are paid at the end of the year. Required: In compliance with the MFRS 119: Employee Benefits: i) Determine the journal entries for the obligations and the plan assets in year 2017. (10 marks) ii) Determine the extracts of the notes to the financial statement showing the obligations and plan assets as at 31 December 2017.