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.
Th e relationship between the periodic pension cost and the plan’s funded status is best expressed in which of the following?
A. Periodic pension cost of –£483 = Ending funded status of –£4,774 – Employer contributions of £693 – Beginning funded status of –£4,984.
B. Periodic pension cost of £1,322 = Benefits paid of £1,322.
C. Periodic pension cost of £210 = Ending funded status of –£4,774 – Beginning funded status of –£4,984.