Changes in the Present Value of the Obligation and in the Fair Value of the Plan Assets :
The first step is to summarise the changes in the present value of the obligation and in the fair value of the plan assets and use this to determine the amount of the actuarial gains or losses for the period. These are as follows:
| (Amount in Rs.) | |||
| 20X4-X5 | 20X5-X6 | 20X6-X7 | |
| Present value of obligation, 1 April | 1,000 | 1,141 | 1,197 |
| Interest cost | 100 | 103 | 96 |
| Current service cost | 130 | 140 | 150 |
| Past service cost — (non vested benefits) | – | 30 | – |
| Past service cost — (vested benefits) | – | 50 | – |
| Benefits paid | (150) | (180) | (190) |
| Actuarial (gain) loss on obligation (balancing figure) | 61 | (87) | 42 |
| Present value of obligation, 31 March | 1,141 | 1,197 | 1,295 |
| Fair value of plan assets, 1 April | 1,000 | 1,092 | 1,109 |
| Expected return on plan assets | 120 | 121 | 114 |
| Contributions | 90 | 100 | 110 |
| Benefits paid | (150) | (180) | (190) |
| Actuarial gain (loss) on plan assets (balancing figure) | 32 | (24) | (50) |
| Fair value of plan assets, 31 March | 1,092 | 1,109 | 1,093 |
| Total actuarial gain (loss) to be recognised immediately as per the Standard | (29) | 63 | (92) |