147Accrued pension expense

1

This section applies in an accounting period where a member of a multinational group—

a

has made contributions to a pension fund in the period,

b

has received amounts from the pension fund in the period, or

c

otherwise has amounts of income or expense relating to the pension fund reflected in its underlying profits.

2

Take the amount of income or expense (expressed as a negative number where expense) that has arisen directly in respect of the fund as reflected in the member’s underlying profits and—

a

add the sum of contributions made to the fund by the member in the period, and

b

subtract any amount received by the member from the fund in the period.

3

If the result of subsection (2)—

a

is more than nil, reduce the underlying profits by that result, or

b

is less than nil, increase the underlying profits by that result (as expressed a positive number).