Page 8 - 12. COMPILER QB - INDAS 19

To Net defined benefit liability (Refer WN 3) 45

Working Notes:
1. Computation of Net interest taken to the Statement of Profit or Loss

= Discount rate x Opening net defined benefit liability
= 8% x (1,400 – 1,140) lacs

= 8% x 260 lacs
= 21 lacs (Rounded off to nearest lacs)

2. Computation of Re-measurements

Actuarial gain or loss on defined benefit liability:
Particulars Rs. in lacs
Opening balance of liability 1,400
Current service cost 55
Interest on opening liability (1,400 x 8%) 112

Actuarial loss (Bal. fig) 13
Closing balance of liability 1,580
Actual return on plan assets:
Particulars Amount Rs. In lacs
Opening balance of asset 1,140
Cash contribution 111

Actual return (Bal. fig) 24
Closing balance of asset 1,275
Net interest on opening balance of plan asset = Rs. 91 lacs (i.e. Rs. 1,140 lacs x 8%) (Rounded off to nearest
lacs)

Hence there is a decrease in plan assets due to remeasurement for which computation is as follows:
Actual Return – Net interest on opening plan asset

= Rs. 24 lacs – Rs. 91 lacs
= Rs. 67 lacs.

Net remeasurement would be computed as follows:
Actuarial loss on liability + Loss on return

= Rs. 13 lacs + Rs. 67 lacs
= Rs. 80 lacs.

3. Computation of increase/ decrease in net defined benefit liability:
Particulars in lacs

Opening net liability (1,400 lacs – 1,140 lacs) 260
Closing net liability (1,580 lacs – 1,275 lacs) 305
Increase in liability 45

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