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 an entity has not paid the full amount payable in relation to service provided by employees to a defined contribution fund, it must recognize a liability for the unpaid contributions. This is because the entity has a legal obligation to contribute the full amount and has not fulfilled that obligation. An asset or gain cannot be recognized because the entity has not received any benefit or profit from the unpaid contributions, and recognizing an expense would not accurately reflect the financial position of the entity.

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