- 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
In the disclosure notes that accompany its financial statements a company with a defined benefit pension plan must report a reconciliation of the:
B. Accumulated benefit obligation with the projected benefit obligation.
C. Prepaid (accrued) pension cost with the funded status of the plan.
A. Pension expense reported in the income statement with the prepaid (accrued) pension cost reported in the balance sheet.
B. Accumulated benefit obligation with the projected benefit obligation.
C. Prepaid (accrued) pension cost with the funded status of the plan.
Correct Answer: C
User Contributed Comments 1
| User | Comment |
|---|---|
| HenryQ | I thought the reconciliation is between PBO and plan assets (funded status). |