prepare any necessary entries in e s financial statements as at dec 31 02 612653

Statement of comprehensive income and statement of changes in equity – actuarial losses

In 02, entity E decides on a retirement plan for its employees that constitutes a defined benefit plan. In 02, actuarial losses of CU 3 are incurred on the plan and the remaining employee benefits expense (including interest costs) is CU 7.

Required

(a) Prepare any necessary entries in E”s financial statements as at Dec 31, 02.

(b) Illustrate the effects of the entries on E”s single statements of comprehensive income for the years 01 and 02.

(c) Illustrate the effects of the entries on E”s statement of changes in equity as at Dec 31, 02.

E presents interest costs in employee benefits expense, i.e. within the results of operating activities and recognizes actuarial gains and losses in other comprehensive income.

In 01 and 02, the carrying amount of E”s issued capital is CU 100 and the carrying amount of E”s capital reserve is CU 20.