- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 25. Non-Current (Long-term) Liabilities
- Subject 10. Defined Contribution and Defined Benefit Pension Plans
CFA Practice Question
ABC Co. uses a defined benefit pension plan. At year-end the pension obligation is $27.4 million and plan assets are $24.5 million. ABC's balance sheet will report ______.
A. a net asset (prepaid pension cost) of $2.9 million
B. a net pension liability of $2.9 million
C. nothing. Only footnote disclosure is required.
User Contributed Comments 1
| User | Comment |
|---|---|
| ramdabom | Assumes there are no amortizations of PSC, Actuarial Gains/Losess, etc. |