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Basic Question 19 of 24
The Collie Company had an actual return of 7% on its pension plan assets in 2010, followed by an actual return of 10% in 2011. The expected or planned return for both years was 9%. Collie Company was correct in using the 9% rate to compute the reduction in pension expense for both years. True or False?
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain and calculate measures of a defined benefit pension obligation (i.e., present value of the defined benefit obligation and projected benefit obligation) and net pension liability (or asset);
describe the components of a company's defined benefit pension costs;
explain and calculate the effect of a defined benefit plan's assumptions on the defined benefit obligation and periodic pension cost;
CFA® 2025 Level II Curriculum, Volume 2, Module 11.