E pays contributions into a post-employment defined benefit plan on behalf of its employees. The balance sheet of the entity at 30 April 2003 showed a net pension liability of $60 million. During the year to 30 April 2004:
• The entity closed down a division and the curtailment of retirement benefits for employees made redundant resulted in a gain of $4 million
• The estimated current service cost was $8 million
• The expected return on assets was $6 million
• The unwinding of the discount on the pension liability was $4 million
• There was no recognition of actuarial gains or losses in the income statement.
The net pension liability at 30 April 2004 was $65 million [before incorporating the actuarial gain or loss for the year]. What is the actuarial gain or loss for the year ended 30 April 2004?
A: A loss of $1 million B: Again of $1 million C: A loss of $3 million D: A gain of $3 million.