Defined contribution plan:

employor: no obligation,fixed payment

employee: fixed benefit after retaire

account tratement: P/L

Defined benefit plan

emplyor: obligation     asset recognisation

obligation >asset deificit

asset>obligation    suplus

calculation assumption: life expectancy   final salaries

actual return on plan asset is different from the amount taken on from P/L as part of the interest components    

plan asset are recognized(measured) at fair value 

account entry:

P/L   Dr  service  cost(post+Curr)  

SFP   Cr plan Obligation   (increase)

P/L Cr gain/(loss) on settle ment

SFP Dr plan asset   (increase)

P/L   DR net interest component

SFP CR plan asset  

OCI CR remeasurent component

SFP DR plan obligation (increase)

amendment  curtailment and settlement  

calculated by comparing the defined deficit before and after the event

PASC    plan amendment, settlement and curtailment

plan surplus can not exceed the recoverable amount  of the plan(restrict)

an asset ceiling is the present value of any economic benefit availble in the form of refunds from the plan or reduction in future contribution to the plan.