yup, it is a decrease in the pension liability of $2m and I think it should be a treated as a gain and taken to the P/L.I misinterpreted it and treated the $8m as the net liability.
Journal entry should be :
Debit Defined benefit obligation $2m Credit P/L $2m
In d consol on restructuring, pension plan of $3m before restructuring n afterward $8m, d difference of $5m I treat as current service n expense to parent r/e.
profit was $3.6m @ p/e ratio of 19 =$68.4m but I think d nci was at fair value n I did not bother to compute 20% of $68.4m n used d $68.4m in my calculations.
P2 was very tough. I mess up question 4. instead of discussing sploci I write up an extract n said dat unrealized gains n losses pass through it n dat d cost of investment in d subsidiary on remeasurement to oci n dat on disposal of d sub is recycled to p/l is dis so n will I get any marks for dis?
