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Basic Question 1 of 17

A lower rate of compensation increase:

A. increases the ABO.
B. decreases the ABO.
C. does not affect the ABO.
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User Contributed Comments 4

User Comment
mazen1967 why
yxten1 ABO does not consider future salary increment.
sjurrens only PBO
dream007 "accumulated"
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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

explain and calculate how adjusting for items of pension and other post-employment benefits that are reported in the notes to the financial statements affects financial statements and ratios;

interpret pension plan note disclosures including cash flow related information;

CFA® 2025 Level II Curriculum, Volume 2, Module 11.