Whitsunday Ltd provides defined superannuation benefits to two (2)of its employees which represents an entitlement of three times their final salary on retirement.The following details are relevant to the current superannuation obligation of the company for the two employees for the years ended 30 June 2011 and 2012: In accordance with AASB 119 "Employee Benefits",what is the expected return and actuarial gain (loss)for the plan assets for the year ending 2012,respectively?

Question

Whitsunday Ltd provides defined superannuation benefits to two (2)of its employees which represents an entitlement of three times their final salary on retirement.The following details are relevant to the current superannuation obligation of the company for the two employees for the years ended 30 June 2011 and 2012:  In accordance with AASB 119 "Employee Benefits",what is the expected return and actuarial gain (loss)for the plan assets for the year ending 2012,respectively?

Quizplus · Accepted Answer

According to AASB 119, the expected return on plan assets is based on the fair value of the plan assets at the beginning of the year, the expected rate of return on those assets, and any contributions or withdrawals during the year. The actuarial gain or loss reflects changes in actuarial assumptions, changes in the expected return on plan assets, and experience adjustments. Without any information regarding specific figures, we cannot calculate the expected return and actuarial gain (loss) for the plan assets. Therefore, we would select the option B which takes a position of an actuarial loss of $6 200.

Whitsunday Ltd Provides Defined Superannuation Benefits to Two (2)of Its