The fair value of the plan assets of Pelcor SA was 12,000,000 at the start of the year. During the year: discount rate at the start of the year 3.5 % (case data); employer contributions 700,000; benefits paid by the fund 610,000. The closing fair value of the assets is 12,790,000. Calculate the interest income on the assets, the expected closing fair value based on the movements, then the return on assets excluding interest income, obtained as a balancing figure.
- Fair value of assets at the start of the year
- 12,000,000
- Discount rate at the start of the year (case data)
- 3.5 %
- Employer contributions
- 700,000
- Benefits paid by the fund
- 610,000
- Fair value of assets at the reporting date
- 12,790,000