Benefit Obligation

CFA Level II FRA
#1

Per the Example 4 pg 95 CFA book question

[question removed by moderator]

The answer in the book is :

For A Liability is 106 +50738 divided by

Equity is 8,823 - 106

Why are the subtracting the increase in obligation from Equity?

Thanks

#2

Because it’s an expense.

#3

I think cause that’s an actuarial loss, and depending in The accounting method, actuarial loss go to OCI (equity)