At the End of the Current Year, Kennedy Co

question 75

Multiple Choice

At the end of the current year, Kennedy Co.has a defined benefit obligation of £335,000 and pension plan assets with a fair value of £245,000.The amount of the vested benefits for the plan is £225,000.Kennedy has an accumulated actuarial gain of £8,300.What account and amountrelated to its pension plan will be reported on the company's statement of financial position?

• A)Pension liability of £74,300
• B)Pension liability of £90,000
• C)Pension asset of £233,300
• D)Pension asset of £110,000

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Definitions:

Financial Statement

A written report that quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Reportable Segment

Part of a company that can be clearly distinguished operationally and financially from other parts of the company, requiring separate reporting under certain financial reporting frameworks.

Financial Report

A formal record containing financial information of an entity, including statements of financial position, performance, changes in equity, and cash flow, for a specific period.

All Other Segments

In financial reporting, this term refers to the aggregation of operating segments that are not individually reportable due to their size or significance.