Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following:
$$\begin{array} { | l | l | }
\hline \text { Present value of the obligation } & 12286 \
\hline \text { Fair value of plan assets } & \underline {11500} \
\hline & \underline { 786 } \
\hline
\end{array}$$
The $786 represents:

Question

Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following:
$$\begin{array} { | l | l | } 
\hline \text { Present value of the obligation } & 12286 \
\hline \text { Fair value of plan assets } & \underline {11500} \
\hline & \underline { 786 } \
\hline
\end{array}$$
The $786 represents:

Quizplus · Accepted Answer

The $786 represents the net liability to be recognised in the statement of financial position, calculated as the difference between the present value of the obligation ($12,286) and the fair value of plan assets ($11,500).

Entity a Contributes to a Defined Benefit Superannuation Plan for Its