kensington plc a hypothetical company based in the united kingdom offers its employe 1557353

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.

 

An adjustment to Kensington’s statement of cash flows to reclassify the company’s excess contribution for 2010 would most likely entail reclassifying £210 million (excluding income

tax effects) as an outflow related to:

A. investing activities rather than operating activities.

B. financing activities rather than operating activities.

C. operating activities rather than financing activities.