Delta Limited (Delta) prepares its financial statements to 30 September each year. The financial statements for the year ended 30 September 2020 are shortly to be authorised for issue. The following events are relevant to these financial statements: Delta operates a defined benefit retirement benefits plan on behalf of current and former employees. Delta receives advice from actuaries regarding contribution levels and overall liabilities of the plan to pay benefits. On 1 October 2019, the actuaries advised that the present value of the defined benefit obligation was $60 million. On the same date, the fair value of the assets of the defined benefit plan was $52 million. On 1 October 2019, the annual market yield on high quality corporate bonds was 5%, 10% on 30th September 2020 while the average for the year was 8%. During the year ended 30 September 2020, Delta made contributions of $7 million into the plan and the plan paid out benefits of $4·2 million to retired members. You can assume that both these payments were made on 30 September 2020. The actuaries advised that the current service cost for the year ended 30 September 2020 was $6·2 million. On 31 August 2020, the rules of the plan were amended with retrospective effect. These amendments meant that the present value of the defined benefit obligation was increased by $1·5 million from that date. During the year ended 30 September 2020, Delta was in negotiation with employee representatives in their hospitability division regarding planned redundancies occasioned by the low business following the Covid epidemic. The negotiations were completed shortly before the year end and redundancy packages were agreed as follows. Employees of 60 years and older at the date of restructuring were forced to retire immediately. These employees were paid out an amount equal to six months’ salary as a lump sum. All other employees had a choice to either immediately leave the employment of the company after receiving a lump sum equal to three months’ salary or stay in the employment of the company after receiving a lump sum equal to 10% of their annual salaries (including bonuses) before restructuring and reducing their future monthly salaries to 80% of their former salaries as they move to other departments. The results of the restructuring agreement with the union were as follows:  Three employees with an average monthly salary of N$35 000 were 60 years and older. The total annual salaries, including 13th cheques, of all other employees in the hospitality division (15 of them) was N$ 5.4 million.  Of the 15 remaining employees, 10 employees with an average salary of N$32 000 per month chose to leave the employment of the company. The lump sums were paid out on 10th October 2020. No entries regarding the lump sums had been passed to the ledgers as of 30th September 2020. The retrenched employees (13 in total) would also obtain their accrued pension benefits from the pension fund benefits as follows:  Before 30 September 2020, Delta made payments of $7·5 million to the employees affected by the redundancies in compensation for the curtailment of their pension benefits. These payments were made out of the assets of the retirement benefits plan and are not included under the termination lump sums.  The impact of these redundancies was to reduce the present value of the defined benefit obligation by $8 million. No entries in regard to the post-employment benefits paid to the retrenched staff was posted as of 30th September 2020. on 30 September 2020, the actuaries advised that the present value of the defined benefit obligation was $68 million. On the same date, the fair value of the assets of the defined benefit plan were $56 million. As at 30 September 2020, the following employee benefits had been paid and correctly recorded in the financial statements.  Salaries and Wages- N$ 57 000 000.  Medical benefits – N$ 3 000 000.  Long service awards- N$ 50 000. REQUIRED a) Determine the amounts that will be recognised in the Statement of profit and Loss and other Comprehensive Income and the Statement of Financial Position of Delta Limited as of 30 September 2020 in respect of post-employment benefits and termination benefits as of 30 September 2020. (7 Marks) b) Record the above transactions using Journal entries relating to the Termination and the Defined Benefits Plan. The accounts must show the respective statement i.e., SPL, SFP, SCO, SCE, SCF. Please note that narrations are required. (13Marks) c) Show how Delta would disclose its employee benefits costs in the SPLOCI and SFP as of 30th September 2020. Ignore accounting policy notes and descriptions of the DB pension fund. (8 Marks) Presentation and Neatness