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Basic Question 6 of 17
Panther Products sponsors a defined benefit pension plan. The following information pertains to that plan:
Retiree benefits paid (end of year): 30 million.
Actual and expected return on plan assets for 2011: 105 million.
Amortization of unrecognized prior service cost: 15 million.
Interest on pension obligation for 2011: 150 million.
Service cost for 2011: 480 million.
Retiree benefits paid (end of year): 30 million.
Actual and expected return on plan assets for 2011: 105 million.
Amortization of unrecognized prior service cost: 15 million.
Interest on pension obligation for 2011: 150 million.
The pension expense that Panther should report in its 2011 income statement is:
User Contributed Comments 4
| User | Comment |
|---|---|
| robkaz | Doesn't 30 million of benefit matter? Because it is paid out at the end of year? Anyone? |
| LRS24 | The $30 million paid out reduces the PBO but not the pension expense |
| ssradja | cause it is paid benefits, not pension expense |
| ljuricek | Retiree benefits are already included in Return on plan assets. |
Your review questions and global ranking system were so helpful.
Lina
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.