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:

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