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Basic Question 9 of 15
To determine the funded status of a pension plan, the reader of a financial statement should refer to the ______.
B. balance sheet
C. income statement
A. footnote disclosures
B. balance sheet
C. income statement
User Contributed Comments 4
| User | Comment |
|---|---|
| yly14 | prepaid pension expenses are show on the bs, able to determine the funded status of the plan. |
| quanttrader | funded status in balance sheet -- specifics found in footnote. |
| farhan92 | pensions are a liability so on b/s? |
| davidt876 | farhan, the pension could overfunded (assets of plan > PBO) and recorded as an asset, or the pension could be underfunded (assets of plan < PBO) and recorded as a liability |
I used your notes and passed ... highly recommended!
Lauren
Learning Outcome Statements
explain the financial reporting of defined contribution, defined benefit, and stock-based compensation plans
CFA® 2024 Level I Curriculum, Volume 2, Module 8.