CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

The balance sheet records the ______ of a pension plan.

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.
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