BIUC has just implemented and sponsored a defined benefit plan for its employees in fiscal 2017, where no past service benefits have been granted (Lento & Ryan, 2016). The following additional information was obtained from an actuarial report that has been prepared as at the year end:

Service cost for 2017: $95,000

Discount or settlement rate: 8%

Actual return on plan assets for 2017: 8%

Contribution (plan funding) in 2017: $87,000

Expected rate of return for 2017: 8%

The initial contribution of $87,000 was made on August 1, 2017 and currently, BIUC has expensed the contribution as part of the management salaries and benefits (on the income statement) for $110448 (Lento, & Ryan, 2016).

what is the issue with this? and what do you recommend BIUC company do to fix their records