Under AS 15, the expense recognised by an enterprise for a defined contribution plan for a period is:

Correct answer: A) The contribution payable to the plan in exchange for the service rendered by employees during that period

Explanation

In a defined contribution plan, the enterprise's obligation is limited to the amount it agrees to contribute, so no actuarial assumptions are needed. AS 15 requires the contribution payable for service rendered during the period to be expensed, with any unpaid amount recognised as a liability (accrued expense) and any excess paid as an asset (prepaid expense).