Entity a Contributes to a Defined Benefit Superannuation Plan for Its

question 38

Multiple Choice

Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following: Present value of the obligation 12,286
Fair value of plan assets 11,500
786
The $786 represents:

• A) The expense to be recognised in the income statement.
• B) The asset to be recognised in the balance sheet.
• C) The liability to be recognised in the balance sheet.
• D) The revenue to be recognised in the income statement.
• E) The cash flow pertaining to the contributions made for the period.