- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 12. Employee Compensation: Post-Employment and Share-Based
- Subject 2. Accounting for Defined Benefit Plans
CFA Practice Question
A lower rate of compensation increase:
A. increases the VBO.
B. decreases the VBO.
C. does not affect the VBO.
Explanation: VBO is based on the current salary level.
User Contributed Comments 6
| User | Comment |
|---|---|
| ramdabom | What is the VBO? |
| uviolet | VBO= vested benefit obligation |
| janis36 | I did not find these terms in this years study curriculum. Am I the only one to notice that the questions here on AnalystNotes and the material covered in books differs significantly? |
| didi | janis36: it is just benefit obligation which is covered in section 2.2. Measuring a Defined Benefit Pension Plan's Obligations |
| akirchner1 | VBO is briefly mentioned in the Notes section. of this year's curriculum. |
| gmsjam | Very briefly I only saw it when I did a search of the e-book. |