- 20 Marks
PSAF – L2 – Q9.3 – Employee Benefits
Show financial statement extracts for Ministry of Transport and Infrastructure's defined benefit plan for 2024 per IPSAS 39.
Question
As at 31st December 2023, the following balances were outstanding in respect of employee pensions which are determined based on a formula that considers number of years of service and the best last six months remuneration of the employee:
| GHC million | |
|---|---|
| Pension plan assets | 65 |
| Pension liabilities | 85 |
During the year ending 31st December 2024, the following transactions occurred:
| GHC million | |
|---|---|
| Transfers into the investments of the scheme | 15 |
| Pension payments made | 29 |
| Investments liquidated to support pension payments | 11 |
| Current service cost | 10 |
| Cost resulting from improvement to the plan formula | 6 |
At 31st December 2024, the present value of pension liabilities was computed at GHc127 million (using a discount rate of 15%) and the fair value of plan assets estimated at GHc98 million.
Required:
You are required to show extracts of the financial statements in respect of employee benefits for the year ended 31st December 2024.
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