Facts
This information related to a defined benefit plan for the year ended December 31, 20X6:
(a) Current service cost of providing benefits for the year to December 31, 20X6: $30 million
(b) Average remaining working life of employees: 10 years
(c) Benefits paid to retired employees in the year: $31 million
(d) Contributions paid to the fund: $21 million
(e) Present value of obligation to provide benefits: $2,200 million at January 1, 20X6, and $2,500 million at December 31, 20X6
(f) Fair value of plan assets: $2,100 million at January 1, 20X6, and $2,400 million at December 31, 20X6
(g) Net cumulative unrecognized gains at January 1, 20X6: $252 million
(h) Past service cost: $115 million. All of these benefits have vested.
(i) Discount rates and expected rates of return on plan assets:
January 1, 20X6 January 1, 20X7 Discount rate 5% 6% Expected rate of return on plan assets 7% 8% The entity wishes to use the corridor approach to recognizing actuarial gains and losses.
Required
Show the amounts that will be recognized in the balance sheet and income statement for the year ended
December 31, 20X6, under IAS 19, Employee Benefits, and the movement in the net liability in the balance Sheet