Question 4Palam Bhd has defined benefit plan for its employees. On 31 December 20X9, the present value of defined benefit obligation and the fair value of plan assets were RM575,000 and RM540,400 respectively. The actuarial loss calculated from the present value of obligation was RM128,500. Calculate the net retirement benefits for the year ended 31 December 20X9:Answer : Net retirement benefit asset of RM34,600  Net retirement benefit liability of RM34,600    Net retirement benefit asset of RM136,100    Net retirement benefit liability of RM93,900

Question 5On 31 December 20X2, the present value of defined benefit obligation and  fair value of defined benefit asset are RM700 million and RM750 million respectively. The future economic benefit of the plan asset is RM65 million. The retirement benefit at 31 December 20X2 isAnswer :Net defined obligation of RM50 million   Net defined asset of RM50 million   Net defined obligation of RM65 million  Net defined asset of RM65 million

Question 13Suria Bhd has defined benefit scheme for its employees. On 1 January 20X9, the fair value of the plan assets was RM440,000 and the present value of the obligation was RM580,000.It was recorded that the past service cost of RM1,800 was the results of changes introduced during the year ended 31 December 20X9. During the year of 20X9, the entity had contributed RM150,000 to the scheme. The payment to its retired employees during the year amounted to RM100,900 and the current service cost was RM40,000.The entity uses a discount rate of 10%.The defined benefit expense for the year 20X9 is:Answer :RM41,800RM54,000    RM55,800  RM104,900

Question 12Under defined benefit plan:Answer :The employees’ benefits are unknown.    Actuarial valuation is unnecessary in accounting for the plan.  The plan asset and retirement benefit obligation belong to the employer.    The employer is not legally bound by the ultimate amount to be payable to the retiring employees.

The report of defined benefit plan shall contain: I. A statement showing net assets available for benefits, the present value of promised benefit and the resulting excess or deficit. II. A statement of net assets available for benefits including a note disclosing the present value of proised benefits  *1 pointI onlyII onlyboth I & IIeither I & II

Remeasurements of defined benefit plan include which of the following?*1 pointThe difference between actual return and interest income on plan assetsActuarial gain or loss on defined benefit obligationChange in the effect of asset ceiling less the interest expense on the beginning of asset ceiling.All of these are included in the remeasurement of defined benefit plan