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Basic Question 3 of 17

Which statement is true? Minimum liability is recognized when

A. the ABO is greater than the fair value of plan assets.
B. the ABO is greater than the expected value of plan assets.
C. the PBO is greater than the fair value of plan assets.

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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

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.