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:

Question

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:

Quizplus · Accepted Answer

The 'Expected return on plan assets' is typically calculated based on the opening fair value of the plan assets, not as a proportion of the current service cost or the plan obligation. It represents the return that is anticipated from the plan's investments over the period.

Entity a Contributes to a Defined Benefit Superannuation Plan for Its