CFA Practice Question

There are 334 practice questions for this study session.

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.
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