CFA Practice Question

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CFA Practice Question

In the disclosure notes that accompany its financial statements a company with a defined benefit pension plan must report a reconciliation of the:

A. Pension expense reported in the income statement with the prepaid (accrued) pension cost reported in the balance sheet.
B. Accumulated benefit obligation with the projected benefit obligation.
C. Prepaid (accrued) pension cost with the funded status of the plan.
Correct Answer: C

User Contributed Comments 1

User Comment
HenryQ I thought the reconciliation is between PBO and plan assets (funded status).
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