CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Which of the following approaches is used when the accumulated benefit obligation exceeds the fair value of the plan assets?
A. Corridor approach.
B. Minimum liability.
C. Amortization of excess ABO.

User Contributed Comments 4

User Comment
Andrewua Why?
StJohnDale Corridor approach - If actuarial gain / loss exceeds ( greater of 1) 10 % of PBO or 2) 10 % Fair Value of Assets), such excess must be recognised in income statement over hte remaining useful lives of the employee's
kvy_madhu Is this an error ??
kvy_madhu Is this an error ??
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