BIUC IMPLEMENTED AND SPONSORED a defined benefit plan for its employees in fiscal 2017. No past service benefits have been granted.

The following additional information was obtained from an actuarial report that has been prepared at the year end

Service cost for 2017:95000

Discount rate: 8%

Actual return on plan assets for 2017:8%

Contribution in 2017:87000

Expected rate of return for 2017: 8%

The initial contribution of 87000 was made on Aug 1,2017. Currently BIUC has expensed the contribution as part of the management salaries and benefits (which has a balance of 110448)

The year end is at Oct 31.

How should this be treated and what would be the implication of this particular treatment?