kensington plc a hypothetical company based in the united kingdom offers its employe 1557350

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.

 

Which of the following is closest to the actual rate of return on beginning plan assets and the rate of return on beginning plan assets that is included in the interest income/expense calculation?

A. Th e actual rate of return was 5.56 percent, and the rate included in interest income/ expense was 5.48 percent.

B. Th e actual rate of return was 1.17 percent, and the rate included in interest income/ expense was 5.48 percent.

C. Both the actual rate of return and the rate included in interest income/expense were 5.48 percent.