Kensington plc, a hypothetical company based in the United Kingdom, offers its employees a defined benefit pension plan. Kensington complies with IFRS. Th e assumed discount rate that the company used in estimating the present value of its pension obligations was 5.48 percent. Information on Kensington’s retirement plans is presented in Exhibit 1.
For the year 2010, the net interest expense of £273 represents the interest cost on the:
A. ending benefit obligation.
B. beginning benefit obligation.
C. beginning net pension obligation.