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Basic Question 14 of 17
The balance sheet records the ______ of a pension plan.
II. difference between fair value of pension assets and PBOs
III. net pension assets or obligations
IV. pension income or expense
I. real economic position
II. difference between fair value of pension assets and PBOs
III. net pension assets or obligations
IV. pension income or expense
User Contributed Comments 4
| User | Comment |
|---|---|
| ehc0791 | After Dec, 2006, I or II should be reported, not III. |
| Smiley225 | True, US standards post Dec 2006 require funded status to be reported on b/s. |
| rodney176 | With all of the intentional smoothing why would number one be correct? |
| UcheSam | @Rodney, it is assumed that companies with follow substance over form principle. |
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Colin Sampaleanu
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.