Azeez Limited (AL) operates a defined benefit plan approved by the Commissioner of the Income Tax....

   

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Azeez Limited (AL) operates a defined benefit plan approved by the Commissioner of the Income Tax. The fund covers all permanent employees belonging to management, professional and technical cadre. Contributions by the company are made to the fund every year on the basis of recommendation of the actuary and in line with the provisions of the income tax laws. The trial balance of the fund as at December 31, 2017 is as under: Azeez Limited (AL) Trial Balance as at December 31, 2017 Balance with banks - saving accounts Interest on saving accounts Accrued interest on saving accounts Receivables from AL Investment in Regular Income Certificates (RICS) -as at January 01, 2017 Interest income on RICS Investment in quoted shares - as at January 01, 2017 Defense Saving Certificates (DSCs) - as at January 01, 2017 Opening balance of the Members' Fund Amount payable to the outgoing members Accrued expenses Accrued interest on RICs Dividend from investment in quoted shares Contribution for the year Gain on disposal of quoted shares having fair value of Rs. 2,500,000 -as at January 01, 2017 Gratuity paid to outgoing members Other expenses Bank charges Debit 22,500,000 337,500 6,250,000 60,000,000 65,000,000 85,000,000 600,000 Rupees Credit 1,350,000 4,800,000 210,000,000 3,612,500 25,000 3,025,000 20,000,000 500,000 3,500,000 50,000 75,000 243,312,500 243,312,500 Fair value of DSCs and quoted shares, as at year end, is Rs. 83,500,000 and Rs. 72,500,000 respectively. Required: Prepare the following, in accordance with the requirements of IAS 26 - Accounting and Reporting by Retirement Benefit Plans, for the year ended December 31, 2017: (i) Statement of net assets available for benefits (ii) Revenue account (iii) Statement of changes in net assets available for benefits (b) What is the difference between 'defined contribution plan' and 'defined benefit plan'? Azeez Limited (AL) operates a defined benefit plan approved by the Commissioner of the Income Tax. The fund covers all permanent employees belonging to management, professional and technical cadre. Contributions by the company are made to the fund every year on the basis of recommendation of the actuary and in line with the provisions of the income tax laws. The trial balance of the fund as at December 31, 2017 is as under: Azeez Limited (AL) Trial Balance as at December 31, 2017 Balance with banks - saving accounts Interest on saving accounts Accrued interest on saving accounts Receivables from AL Investment in Regular Income Certificates (RICS) -as at January 01, 2017 Interest income on RICS Investment in quoted shares - as at January 01, 2017 Defense Saving Certificates (DSCs) - as at January 01, 2017 Opening balance of the Members' Fund Amount payable to the outgoing members Accrued expenses Accrued interest on RICs Dividend from investment in quoted shares Contribution for the year Gain on disposal of quoted shares having fair value of Rs. 2,500,000 -as at January 01, 2017 Gratuity paid to outgoing members Other expenses Bank charges Debit 22,500,000 337,500 6,250,000 60,000,000 65,000,000 85,000,000 600,000 Rupees Credit 1,350,000 4,800,000 210,000,000 3,612,500 25,000 3,025,000 20,000,000 500,000 3,500,000 50,000 75,000 243,312,500 243,312,500 Fair value of DSCs and quoted shares, as at year end, is Rs. 83,500,000 and Rs. 72,500,000 respectively. Required: Prepare the following, in accordance with the requirements of IAS 26 - Accounting and Reporting by Retirement Benefit Plans, for the year ended December 31, 2017: (i) Statement of net assets available for benefits (ii) Revenue account (iii) Statement of changes in net assets available for benefits (b) What is the difference between 'defined contribution plan' and 'defined benefit plan'?

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a Azeez Limited AL Statement of net assets available for benefits as at December 31 2017 Rupees Assets Investment ... View the full answer