Entity a Contributes to a Defined Benefit Superannuation Plan for Its

question 49

Multiple Choice

Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following:
$$\begin{array} { | l | l | } \hline \text { Current service cost } & 12785 \\\hline \text { Interest cost } & 983 \\\hline \text { Expected return on plan assets } & ( 1150 ) \\\hline \text { Net actuarial gain recognised in period } &\underline{( 1835) } \\\hline & \underline{10783} \\\hline\end{array}$$
The 'Expected return on plan assets (1150) ' represents:

• A) the expected return at the start of the period, measured as a proportion of the current service cost.
• B) the expected return at the start of the period, measured as a proportion of the opening fair value of the plan obligation.
• C) the adjusted return for the period, measured as a proportion of the closing fair value of the plan assets.
• D) the expected return at the start of the period, measured as a proportion of the opening fair value of the plan assets.

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Definitions:

Service Demands

The consumer's need or desire for services, which can vary based on factors like time, location, and quality preferences.

Capital Expenditures Budget

A budget that outlines planned investments in fixed assets, such as property, plant, and equipment, which are expected to provide benefits over multiple periods.

Investing Activities

Financial transactions and activities related to the acquisition or sale of long-term assets and investments.

Budgeted Balance Sheet

A projection of a company's financial position at a future date, estimating assets, liabilities, and shareholders' equity based on planned activities.