- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 11. Employee Compensation: Post-Employment and Share-Based
- Subject 2. Accounting for Defined Benefit Plans
CFA Practice Question
The corridor approach was invented to prevent the balance of the Unrecognized Gain or Loss account balance from getting too small. True or False?
Correct Answer: False
The approach is used to prevent the balance from getting too large.
User Contributed Comments 1
| User | Comment |
|---|---|
| dblueroom | I think the invention of the corridor approach is really to defer the recognization of gain, but also is to prevent the balance from getting too big. |