- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 11. Employee Compensation: Post-Employment and Share-Based
- Subject 3. Analysis of Pension Plan Disclosures
CFA Practice Question
The balance sheet records the ______ of a pension plan.
II. difference between fair value of pension assets and PBOs
III. net pension assets or obligations
IV. pension income or expense
I. real economic position
II. difference between fair value of pension assets and PBOs
III. net pension assets or obligations
IV. pension income or expense
Correct Answer: I and II
I is the same as II. III is an old requirement. IV is reported in the income statement.
User Contributed Comments 4
| User | Comment |
|---|---|
| ehc0791 | After Dec, 2006, I or II should be reported, not III. |
| Smiley225 | True, US standards post Dec 2006 require funded status to be reported on b/s. |
| rodney176 | With all of the intentional smoothing why would number one be correct? |
| UcheSam | @Rodney, it is assumed that companies with follow substance over form principle. |