Donna, Inc. operates a defined benefit pension scheme for staff. The pension scheme has been operating for a number of years but not following IAS 19. The finance director is unsure of which accounting policy to adopt under IAS 19 because he has heard very conflicting stories. He went to one presentation in 2010 that referred to a '10% corridor' approach to actuarial gains and losses, recognizing them in profit or loss, but went to another presentation in 2012 that said actuarial gains and losses should be recognized in other comprehensive income.
The pension scheme had a market value of assets of £3.2 million and a present value of obligations of £3.5 million on 1 January 2013. There were no actuarial gains and losses brought forward into 2013.
The details relevant to the pension are as follows (in £000):

Required:
(a) Advise the finance director of why the presentations from 2010 and 2012 gave different treatments of actuarial gains and losses
(b) Show how the pension scheme would be presented in the financial statements for the period 2013-2015 under IAS 19 (2011).

2015 2013 2014 Discount rate at start of year Expected rate of return on plan assets at start of year Current service cost Benefits paid Contributions paid Present value of obligations at 31 December Market value of plan assets at 31 December 5% 9% 6% 4% 8% 10% 150 160 170 130 130 3,200 3,600 140 150 120 120 3,500 3,600 3,600 3,400