a ias 19 employee benefits was amended in december 2004 to allow a choice of method 1572009

(a) IAS 19 Employee Benefits was amended in December 2004 to allow a choice of methods for the recognition of actuarial gains and losses.

Required:

Explain the treatments of actuarial gains and losses currently permitted by IAS 19.

(b) The following information relates to the defined benefit employees compensation scheme of an entity

Actuarial gains and losses outside the 10% corridor are to be recognised in full in the income statement. Assume that all transactions occur at the end of the year.

Required:

(a) Calculate the present value of the defined benefit plan obligation as at the start and end of 2008 and 2009 showing clearly any actuarial gain or loss on the plan obligation for each year.

(b) Calculate the market value of the defined benefit plan assets as at the start and end of 2008 and 2009 showing clearly any actuarial gain or loss on the plan assets for each year.

(c) Applying the 10% corridor show the total charge in respect of this plan in the income statement for 2008 and the statement of comprehensive income for 2009