Northerley plc prepares accounts to 31 December each year and has operated a defined benefit pension scheme for many years. At 31 December 2016, the present value of the defined benefit obligation was calculated to be £22.5m and the fair value of plan assets was £21.9m. The following information relates to the year to 31 December 2017:

(a) The present value of the current service cost for the year is £3.7m. This is before deducting employee contributions.

(b) Interest cost and interest income for the year have been calculated at £1.8m and £2.1m respectively.

(c) The return on plan assets (before deducting interest income) was £2.9m.

(d) Northerley plc made contributions of £3.8m into the plan. Employees contributed a further £1.5m.

(e) The plan paid out benefits to past employees amounting to £1.9m.

(f) At 31 December 2017, the present value of the defined benefit obligation is £27.4m and the fair value of plan assets is £28.2m.

Calculate the defined benefit expense which should appear in the company's statement of comprehensive income for the year to 31 December 2017 and the defined benefit asset or liability which should appear in the statement of financial position at that date. Also reconcile the expense for the year to the employer contributions made during the year.