where these concepts were discussed in the curriculum or in Schweser notes? In which book and on what page? Many thanks. I couldn’t find these concepts from index.
Can’t recall page numbers etc - isn’t it just the difference between the PBO and the plan value and is the figure reported under GAAP?
yep. There is a whole SS for this stuff.
Thank you guys, but what you’re referring to is funded status. It seems to be a difference between funded plan and unfunded plan. Some benefit plans are funded, some are not. It’s a pure descriptive concept, no calculations needed.
Reference?
Note that besides defined beenfit (DB) and defined contribution (DC) plans there are also oher post retireman plan like health care and insurance. Except for DB, none of the others are funded. Funding simply means putting money in a trust. If PV of trust > PV of DB , overfunded else underfunded. For other plans, company just treats the cost as an expense. This is explained in beginning of SS in CFAI text (chap 23)
Nice, thadim, you’re amazing. The bulk of the CFAI text books scares me out of something thadim Wrote: ------------------------------------------------------- > Note that besides defined beenfit (DB) and defined > contribution (DC) plans there are also oher post > retireman plan like health care and insurance. > Except for DB, none of the others are funded. > Funding simply means putting money in a trust. If > PV of trust > PV of DB , overfunded else > underfunded. For other plans, company just treats > the cost as an expense. > This is explained in beginning of SS in CFAI text > (chap 23)
Thanks Thadim,
That was great help indeed