pension liability

CFA Level II
#21

I knew it. What almost tripped me up was not catching the IFRS reference in the vignette. Fortunately, I caught that on the second pass.

#22

1866?

#23

whatever the smallest answer was the one I chose

#24

1821

#25

that sounds about right. something 18XX, the other answers were totally different

#26

but not 8122 … for ifrs B/s liability = FMV - Adjusted dbo. you have to adjust dbo with the foot notes I guess …

#27

They gave Funded Status. In US GAAP, that IS the liability. They also deducted the UNRECOGNIZED actuarial and gains/losses, and gave the subtoatal for that. That subtotal is the IFRS liability. No need for footnotes, no need for fmv - adj dbo. BullPow Wrote: ------------------------------------------------------- > but not 8122 … > > for ifrs B/s liability = FMV - Adjusted dbo. > you have to adjust dbo with the foot notes I guess > …

#28

This is directly from IAS 19 from IFRS website: The amount recognised as a defined benefit liability shall be the net total of the following amounts: (a) the present value of the defined benefit obligation at the end of the reporting period (see paragraph 64); (b) plus any actuarial gains (less any actuarial losses) not recognised because of the treatment set out in paragraphs 92 and 93; © minus any past service cost not yet recognised (see paragraph 96); (d) minus the fair value at the end of the reporting period of plan assets (if any) out of which the obligations are to be settled directly (see paragraphs 102–104). so it is PBO - Fair Value of Assets - Actuarial losses the Answer should be 1821 as the funded status (PBO-Fair Value of Assests) was 4XXX and there was an acutarial loss totalling about 2XXX. the number 1821 was already calculated below the funded status in the vigentte. if it was based on GAAP the answer would have been 4XXX (funded status) I hope this clarifies the ongoing debate.

#29

so whats the answer something other than (4812) right ? or not ?

#30

right. the answer was 1821 which was C

#31

i have been watching the debate since Saturday. Wasn’t the answer just sitting there? I thought they had done the recon for us. If we were using GAAP we would not back out Unrecog… etc. I must admit maybe I was missing something

#32

Yardy you are right all the available answers were already calculated in the vigentte A. 14XXX (which is the PBO) B. 4XXX ( which is PBO - Fair Value of Assets) (Funded status reported on B/S per US GAAP) C. 1821 (PBO - Fair Value of Assets - Unrecognized acctuaral loss) (reported on B/S per IFRS the trick was to deffrentiate which one was the IFRS B/S entery. no calculation was actually required.

#33

i think was the easiest quest. The did all the work you just needed to know the difference between GAAP treatment & IFRS

#34

Awesome. I thought some others were posting that the different answer was correct. I selected 1812. CFA made it real easy by doing that calc for us.

#35

1821 was the answer. The choice with 13K was obviously wrong because if I remember correctly they only showed the amount of the pension obligation exclusively which is not consistent with IFRS or GAAP FAS 158 (this is coming from an accountant). The funded status is only consistent with FAS 158 so that was obviously not correct here. That only leaves 1821 which is pre-FAS 158 number so to speak.

#36

did you guys do the 5xxx exam as I don’t recall this question…?

#37

5151