Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following:
$$\begin{array} { | l | r | }
\hline \text { Present value of the obligation } & 25569 \
\hline \text { Fair value of plan assets } & \underline { 25500 } \
\hline & \underline { 69 } \
\hline
\end{array}$$
The 69 represents:

Question

Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following:
$$\begin{array} { | l | r | } 
\hline \text { Present value of the obligation } & 25569 \
\hline \text { Fair value of plan assets } & \underline { 25500 } \
\hline & \underline { 69 } \
\hline
\end{array}$$
The 69 represents:

Quizplus · Accepted Answer

The 69 represents the net liability to be recognised in the statement of financial position. This is because the present value of the obligation (25569) exceeds the fair value of plan assets (25500), indicating a shortfall that the entity needs to recognize as a liability.

Entity a Contributes to a Defined Benefit Superannuation Plan for Its