- CFA Exams
- CFA Level I Exam
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 14. Employee Compensation: Post-Employment and Share-Based
- Subject 4. Other Post-Retirement Benefits
CFA Practice Question
Which of the following would be found listed as a liability on a company's balance sheet?
A. projected benefit obligation.
B. postretirement benefits other than pension obligation.
C. operating lease obligations.
Explanation: Accrued post-retirement obligations are reported on the balance sheet as a liability.
User Contributed Comments 6
| User | Comment |
|---|---|
| keithinny | Doesn't it depend whether the post retirement benefit is funded or not? |
| PedroEdmundo | if I am not wrong, postretirement benefit are never funded... |
| volkovv | postretirement benefits are funded in very rare cases, but in general they are not funded |
| HenryQ | Does PBO is shown on B/S at all? Or just in notes. If it does, it is under liability, is it? |
| Masterkang | There can be a "liability for pension benefits" -which consists of Plan assets at fair value - PBO. This is also called the "Funded Status." The PBO itself is not reported on the Balance sheet. |
| HenryQ | Thanks Masterkang...you are right. The new rule clearly specifies that. |