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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:
 Current service cost 12785 Interest cost 983 Expected return on plan assets (1150)  Net actuarial gain recognised in period (1835) ‾10783‾\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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