The key steps involved in accounting by the employer for a defined benefit post-employment fund in accordance with AASB 119 include:
I. Determining the deficit or surplus of the fund
II. Determining the amount of the net defined benefit liability (asset)
III. Determining the amounts to be recognised in profit or loss
IV. Determining the remeasurements of the net defined benefit liability (asset) to be recognised in other comprehensive income

Question

Quizplus · Accepted Answer

All four steps are required for employer accounting for a defined benefit post-employment fund in accordance with AASB 119. Step I is necessary for determining the deficit or surplus of the fund, which impacts the net defined benefit liability (asset) determined in Step II. Steps III and IV are then required to determine the recognition of amounts in profit or loss and other comprehensive income, respectively. Therefore, all four steps are necessary for a complete assessment of the accounting for a defined benefit post-employment fund.

The Key Steps Involved in Accounting by the Employer for a Defined