CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Pension plan assets are not recognized in the company's accounts or its financial statements. True or False?
Correct Answer: True

Pension plan assets are not formally recognized in the accounts but must be disclosed in the notes to the financial statements.

User Contributed Comments 5

User Comment
jkc2007 i believe the new gaap (under the new 2008 cfa curriculum) requires both plan assets and liabilities be recognized on the balance sheet. could anyone clarify?
ehc0791 The net of PBO and plan assets should be recognized on B/S, not each of them.
bmeisner Ok I just read through the section you guys are refering to, it seems that the number is still netted off as ehc mentioned. It seems the difference is that the liability recognized is PBO - fair value of plan assets instead of ABO - fair value of plan assets as in the minimum liability rule. This only affects the balance sheet including liabilities and shareholders equity, but it still does not affect the income statement. See page 137 of the reading.
quanttrader only funded status
UcheSam Is notes to the accounts not part of the financial statements?
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