Cima F2 Exam Question No 41

Question No 41:

What is effect on statement of comprehensive income for the period?

The changes in the defined benefit asset/liability in the period are treated as follows:
Current and past service costs: Dr P&L Cr Pension liability
Interest cost (on liability): Dr P&L (finance cost) Cr Pension liability
Interest income (on asset): Dr Pension asset Cr P&L (net off against finance cost)
Curtailments and settlements (if any): Dr or Cr P&L
Cr or Dr Pension liability
Remeasurement component gain/loss: Dr or Cr Other comprehensive income Cr or Dr Pension asset / liability