CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

When accounting for pension plans, the change in the PBO over a given year will not reflect the impact of:
A. Service cost for the year.
B. Change in the estimate of compensation growth.
C. Earnings of the pension fund for the year.
Explanation: The PBO over a given year will not reflect the impact of earnings of the pension fund for the year, but will reflect the impact of benefits paid during the year.

User Contributed Comments 1

User Comment
danlan2 Earnings of the pension fund of the year will reflect the pension asset and not PBO.
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