Universal Solutions operates a defined benefit pension scheme on behalf of its employees. The company conducts an annual review of funding in conjunction with their actuaries who have supplied the following information: At 31 Dec Year 3 At 31 Dec Year 4 Present value of pension fund obligation $1,000 $1,200 Market value of pension fund assets $1,000 $1,150 Information relevant to the actuarial valuation: Expected return on plan assets 8% Discount rate used to determine pension fund liabilities 12% Current service cost $100 Contribution to the pension fund $140 Benefits paid out amounted to $95

Required

(i) Calculate the charge to profit or loss for the year to 31 December Year 4. 5 Marks

Compute the amount of the pension surplus or deficit in the statement of financial position as at 31 December Year 4. 5 Marks

(ii) Compute any actuarial gain or loss as at 31 December Year 4 and explain the available accounting treatments of such a gain or loss. 5 Marks