- CFA Exams
- CFA Level I Exam
- Study Session 5. Financial Reporting and Analysis (1)
- Reading 14. Employee Compensation: Post-Employment and Share-Based
- Subject 3. Analysis of Pension Plan Disclosures
CFA Practice Question
The minimum liability is the difference between the
A. accumulated benefit obligation and the fair value of plan assets.
B. projected benefit obligation and the market-related asset value.
C. projected benefit obligation and the fair value of plan assets.
User Contributed Comments 2
| User | Comment |
|---|---|
| tijelo | This is not correct. Answer C is correct because PBO should be used as opposed to ABO. |
| Hishy | No, AN is correct. ABO - FV Assets = Minimum liability PBO - FV Assets = Funded Status |