Entity a Contributes to a Defined Benefit Superannuation Plan for Its

question 6

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 $10 783 represents:

• A) the expense to be recognised in the statement of comprehensive income.
• B) the asset to be recognised in the statement of financial position.
• C) the liability to be recognised in the statement of financial position.
• D) the revenue to be recognised in the statement of comprehensive income.

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Definitions:

Breach Of Contract

The failure of one party to fulfill any of its agreed terms and conditions without a lawful excuse.

Independent Contractors

Individuals or businesses that provide goods or services to another entity under terms specified in a contract, but are not considered employees.

Job Classification

The categorization of positions within an organization based on duties, responsibilities, and the level of authority.

Better Benefits

Enhanced advantages or perks provided to employees, beyond statutory requirements, aimed at improving their work-life balance and job satisfaction.