MFRS 119 Employee Benefits and Reporting by Retirement Plan underwent a major changes and the directors of Queen’s, a fashion clothing company, have heard that in the past for a defined benefit schemes, actuarial gains and losses can be either immediately recognized in profit and loss, and other comprehensive income allowed to apply the deferral approach. The directors are unsure of the differences between other comprehensive income and profit or loss item. Required: With the reference to the above pension scheme, discuss the following:

(a) Compare the different approaches in recognizing actuarial gains and losses.

(b) Discuss the accounting treatment as stated in the revised MFRS 119? 

(c) Discuss the differences between the items recognized in the other comprehensive income and profit or loss. 

(d) Critically assess the rationale as to why this re-measurement gains and losses cannot be recycled to profit and loss. 

Answer rating: 100% (QA)

1 method for recognition is full recognize method using the Pl ac and full recognize method using th... View the full answer