- 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
Aggressive pension-related rates assumptions include:
II. low discount rate.
III. high rate of compensation growth.
IV. low rate of compensation growth.
V. higher assumed rate of return on plan assets.
VI. lower assumed rate of return on plan assets.
I. high discount rate.
II. low discount rate.
III. high rate of compensation growth.
IV. low rate of compensation growth.
V. higher assumed rate of return on plan assets.
VI. lower assumed rate of return on plan assets.
Correct Answer: I, IV and V
These assumptions improve the reported status of the pension plan.
User Contributed Comments 1
| User | Comment |
|---|---|
| jkc2007 | aggressiveness ito reducing pension exp or pbo. |