CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Which of the following components reduces the annual pension expense amount?
A. Actual return on plan assets
B. Expected return on plan assets
C. Amortization of unrecognized prior service costs

User Contributed Comments 4

User Comment
keit This procedure insulates pension calculations from sudden market value changes.
dimanyc Use expected in the calc of the pension expense, but actual in calc of plan assets.
Clint My rule of thumb is to keep the e's together expected and expense and remember a's together actual and assets. Accounting and ABO also go together and Expected and PBO go together.
birdperson thanks clint
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