Extracts from the pension disclosures of Blue Pony Ltd. are shown below.
Pension Benefits The estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide for these benefits are as follows:

Required:
1. With respect to the actuarial assumptions listed, explain how each assumption would be developed. Indicate whether the trend in each assumption would lead to higher or lower pension expense.
2. Explain the amount that would be recorded as an SFP pension liability.
3. Explain the nature of amounts that are recorded in OCI. Are these amounts recycled to earnings?

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Plan assets, at fair value Defined benefit obligation Deficiency Actuarial assumptions: Yield rate for defined benefit obligation Weighted average rate of compensation increase for defined benefit obligation Retention rate Accumulated OCI: Opening; accumulated losses Actuarial and experience losses Closing 20X2 $545 612 $(67) 20X2 5.25% 3.50% 84% 20X2 $ 94 16 $ 110 20X1 $484 575 $(91) 20X1 5.3% 4.00% 88% 20X1 $ 91 $94