Prentice plc operates a defined benefit pension plan and prepares financial statements to 31 March each year. The financial statements for the year to 31 March 2009 showed that the defined benefit obligation on 31 March 2009 was £140m and plan assets on that date were £147m. The following information relates to the year to 31 March 2010:

(i) The company made contributions of £18.4m into the plan. Employee contributions were £7.3m.

(ii) Benefits paid in the year were £19.6m.

(iii) Investment income received on plan assets amounted to £8.9m. This amount was

£3.7m less than the amount forecast for the year by the company actuary.

(iv) The present value of the current service cost for the year is estimated at £19.2m.

(v) The interest cost for the year is £9.8m.

As at 31 March 2010, the actuary estimated that the present value of the defined benefit obligation was £158m. The fair value of plan assets was £159m.

It is company policy that actuarial gains and losses which arise during an accounting period should be included in the defined benefit expense for that period.

Required:

(a) Identify the main difference between a defined benefit pension plan and a defined contribution pension plan.

(b) Explain the terms "defined benefit obligation" and "current service cost" in relation to defined benefit pension plans. Also explain why the amounts of these items can only be estimated.

(c) Explain the terms "interest cost" and "actuarial gains and losses".

(d) Calculate the defined benefit expense which should be shown in the company's statement of comprehensive income for the year to 31 March 2010. Explain why the amount of this expense is not equal to the £18.4m contributed by the company during the year.

(e) Calculate the defined benefit asset or liability which should be shown in the company's statement of financial position at 31 March 2010. Reconcile this amount to the equivalent amount at 31 March 2009.