The Following Information Relates to the Old Fogey's Superannuation Plan,which

question 29

Multiple Choice

The following information relates to the Old Fogey's Superannuation Plan,which is a defined benefit scheme.Amounts given for all assets are at net market value. $$\begin{array} { | l | r | r | } \hline & \text { Year ended } & \text { Year ended } \\\hline & 30 \text { June 2014 } & \text { 30 June 2015 } \\\hline & ( \$ 000 ) & ( \$ 000 ) \\\hline \text { Government securities } & 8600 & 7500 \\\hline \text { Mortgage loans } & 2500 & 3125 \\\hline \text { Shares in listed companies } & 11000 & 12500 \\\hline \text { Fixtures and fitting } & 275 & 250 \\\hline & & \\\hline \text { Other information } & \text { (\$000) } & \\\hline \text { Cash } & 50 & \\\hline \text { Accounts payable } & 40 & \\\hline \text { Benefits paid } & 95 & \\\hline \text { Investment expenses } & 19 & \\\hline \text { General and administration expenses } & 50 & \\\hline \text { Interest received } & 940 & \\\hline \text { Dividends received } & 20 & \\\hline \text { Members' contributions received } & 87 & \\\hline \text { Employers' contributions received } & 174 & \\\hline\end{array}$$ At balance date the scheme is owed from the current period. $$\begin{array} { | l | r | } \hline \text { Interest } & \$ 51000 \\\hline \text { Dividends } & \$ 65000 \\\hline \text { Contributions from members } & \$ 6000 \\\hline \text { Contributions from employers } & \$ 12000 \\\hline\end{array}$$ During the period shares in listed companies that had a net realisable value of $5 million at the beginning of the period were sold for $6.2 million.Shares were purchased during the period for $2 million. Actuarial reports on the fund are undertaken annually at balance date.The actuarial estimate of the accrued benefits were:
$$\begin{array} { | l | l | } \hline 30 \text { June 2000: } & \$ 44100000 \\\hline 30 \text { June 2013: } & \$ 52300000 \\\hline\end{array}$$ What is the total revenue for the plan for the period ended 30 June 2015?

• A) $6 555 000
• B) $2 709 000
• C) $8 200 000
• D) $1 685 000

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation for the risk taken.

Cost of Debt

The effective rate that a company pays on its borrowed funds, which can include loans, bonds, and other forms of debt.

Debt/Equity Ratio

This ratio demonstrates the equity to debt proportion in the context of financing company assets.