FDE is finalizing its accounts for the year ended 31 March 2009. FDE operates a defined benefit pension scheme for all its eligible employees. The current service cost of operating the scheme was $7.8 million for the year ended 31 March 2009. At 31 March 2008, the fair value of the pension assets was $73 million and the present value of the pension scheme liabilities was $80 million. $8.8 million of unrecognized actuarial losses were brought forward at 1 April 2008. FDE made contributions to the scheme in the year of $8.8 million. The expected return on the pension scheme assets is 8.219% and the interest cost for the year is $ 10.2 million. The pension scheme paid out $4 million in benefits in the year to 31 March 2009. FDE adopts IAS 19, Employee Benefits, and follows the corridor approach in recognizing actuarial gains and losses. As at 31 March 2009, the fair value of pension scheme assets was $84 million and the present value of pension scheme liabilities was $95 million. The average remaining service lives of employees who participate in the scheme is 10 years.
Required:
(a) Calculate the expense, in respect of the pension scheme, that FDE will include in its income statement for the year ended 31 March 2009.
(b) Calculate the net pension asset or liability that will appear in the balance sheet of FDE as at 31 March 2009.