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Basic Question 5 of 17
To determine the funded status of a pension plan, the reader of 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 am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.