Entity A contributes to a defined benefit superannuation plan for its employees.It calculates the following: Current service cost 12,785
Interest cost 983
Expected return on plan assets (1,150)
Net actuarial gain recognised in period (1,835)
10,783
The $10,783 represents:

Question

Quizplus · Accepted Answer

The $10,783 represents the net pension expense (i.e. current service cost+interest cost-expected return on plan assets+net actuarial gain recognised in period) to be recognized in the income statement. Therefore, option A is the correct choice.

Entity a Contributes to a Defined Benefit Superannuation Plan for Its