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Basic Question 11 of 17
In the disclosure notes that accompany its financial statements a company with a defined benefit pension plan must report a reconciliation of the:
B. Accumulated benefit obligation with the projected benefit obligation.
C. Prepaid (accrued) pension cost with the funded status of the plan.
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.
User Contributed Comments 1
| User | Comment |
|---|---|
| HenryQ | I thought the reconciliation is between PBO and plan assets (funded status). |
I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
explain and calculate how adjusting for items of pension and other post-employment benefits that are reported in the notes to the financial statements affects financial statements and ratios;
interpret pension plan note disclosures including cash flow related information;
CFA® 2025 Level II Curriculum, Volume 2, Module 11.