CFAI Text Vol 3 P.570
Why pension obligation, rather than pension liability is used here ? Can “pension obligation” and “pension liability” be used interchangeably ? Do they have same meaning ?
CFAI Text Vol 3 P.570
Why pension obligation, rather than pension liability is used here ? Can “pension obligation” and “pension liability” be used interchangeably ? Do they have same meaning ?
Pension obligation is what will be owed to those who require pension in the future, pension liability is when the value of the fund’s asset are lower than the present value of pension obligation.