If the amount paid to the defined contribution fund by an entity during the year is less than the amount payable in relation to service provided by employees, the entity must recognise;

Question

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If the amount paid to the defined contribution fund is less than the amount payable in relation to service provided by employees, it means that the entity has a liability to pay the difference. Therefore, the entity should recognise a liability for the unpaid contributions. Option A is incorrect as an asset cannot be recognised for unpaid contributions. Option C is incorrect as an expense is recognised when the payment is made, not when it is outstanding. Option D is also incorrect as there is no gain to recognise in this situation.

If the Amount Paid to the Defined Contribution Fund by an Entity