Health Beyond Boundaries, Ltd., runs a chain of private hospitals and clinics in several large cities in Europe and North America. It has an established pension plan for several years since it began operations. It uses the immediate recognition method with IFRS. Terms of the pension plan as well as other information related to its activities for the year ended December 31, 2015 are as follows: Interest Rate - L The expected earnings rate on plan assets and the discount rate is set at 8%; Service Costs - L For 2015, the current service costs amounted to $1,005,000. L Some time late in 2014, the company agreed with its employees to an amendment in the plan's future benefits payout formula. Thus employees in service on January 1, 2015, would receive a credit of $2,047,500 for their past service, beginning in 2015. Defined Benefits Obligation L This above mentioned past service cost equaled 12% of the balance of the Defined Benefits Obligation existing on December 31, 2014. Actual Returns - L The plan received $649,740 as returns from the investment of its assets.

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