A board member inquires how Plan A’s periodic pension costs affect SKI’s operating performance. The FC
chair reviews the adjustments needed to account for individual pension components that are considered
operating costs and those considered non-operating costs, when calculating profit before taxation. Note 16
in the income statement lists the following: current service costs of €40 million, interest costs of €263
million, expected return on plan assets of €299 million, and actual return on plan assets of €205 million.
after reclassifying pension components to reflect economic income or expenses, the net adjustment to profit before taxation is:
A. -205 million
B. -94 million
C. +129 million
