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Basic Question 8 of 17

In computing the minimum liability, the employer is allowed to use ______ of the plan assets.

A. the expected value.
B. the fair value.
C. the less of the expected or fair value.
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User Contributed Comments 1

User Comment
quanttrader min liab = ABO - fair value of plan assets
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Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh

Craig Baugh

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.