R
Rieks
Member
I have another exam F204 question: Sometimes there are questions for which the examiner's report doesn't seem to be comprehensive.
May 2010 exam F204 question 3 iv) the question asks to describe the main issues pertaining to setting the employer's contribution rate that the trustees should consider. (the employer's scheme closed, and the AASCR is larger than the PUSCR) In my mind, the following issues, which are not on the examiners' report, are important:
- The employer may be able to use the employer surplus account to pay the additional contributions. This option needs to be considered by the employer trustees
- Tax benefit: the employer might not be in favour of contributing at a rate higher than that for which they are granted tax benefits by SARS.
- Accounting: the employer might want the contributions paid to be similar to those recognized in their financials, which will be calculated according to the PUM as per IAS19 requirements.
There are some more, but I'm not sure if I will get marks for these because they are not on the examiner's report... I feel they should be included and the examiner's report is incomplete. Please advise?
May 2010 exam F204 question 3 iv) the question asks to describe the main issues pertaining to setting the employer's contribution rate that the trustees should consider. (the employer's scheme closed, and the AASCR is larger than the PUSCR) In my mind, the following issues, which are not on the examiners' report, are important:
- The employer may be able to use the employer surplus account to pay the additional contributions. This option needs to be considered by the employer trustees
- Tax benefit: the employer might not be in favour of contributing at a rate higher than that for which they are granted tax benefits by SARS.
- Accounting: the employer might want the contributions paid to be similar to those recognized in their financials, which will be calculated according to the PUM as per IAS19 requirements.
There are some more, but I'm not sure if I will get marks for these because they are not on the examiner's report... I feel they should be included and the examiner's report is incomplete. Please advise?