b) A company that makes an annual contribution of P650 000 identified a surplus of P2 400 000. The estimated service lives of current employees is 10 years. The actuary recommends the following options: 

iii. A contribution holiday of 4 years 

iv. Two lump sum payments of P 1 200 000 

v. Pay employees higher pensions Required to show: 

a) The accounting treatment in both the statement of comprehensive income and the statement of financial position for the 10 years under each of the 3 options recommended by the actuary?

Answer rating: 100% (QA)

To properly account for the surplus funds in the companys financial statements the company will need to consider the options recommended by the actuar... View the full answer