PENSION Where should we add employee and employer contributions in the pension topic? My understanding was: Employee contribution in PBO and Asst Employer contribution in Fair Market Value and Market Related Value not in PBO FSA SYNTHESIS If A guarantees B’s debt of 100 million, it should show in A’ s liability. Where should it go in A’s asset side? A/R from B or just adjust it in equity? Comprehensive Income = Net Income Reported -+non recurring items -+ valuation adjustment (CFA). Is this correct? I saw one of the paid exams says NI+valuation adjustments (non recurring items not included) Do you think CFA will ask synthesis question since it is highly subjective when it comes to Normalizing? ICAPM and international Valuation Rf = US Rf + inflation differential. Is this correct? Cost of Debt = Rf (Foreign Country) + Inflation Differential + Credit Risk OR Rf (US Rf) + Inflation Differential + Credit Risk OR Rf (Investor country Rf ) + Inflation Differential + Credit Risk Which one? Thanks
It would be a bit pointless as a UK investor to use the US risk free rate.
That eliminate one option, then which one is between the remaining two? Local Rf or Investor Country Rf?
home currency RFR. so if US investor: E® = RFR (US) + (Bg*MRPg) + (y*FCRP) where MRPg is the global market risk premium
Employee contributions flow through PBO, and Employer AND Employee flow through Plan assets. If company A has gauranteed a debt for comany B then it would only show up in Footnotes, not on the balance sheet. Anish
Anish, I agree with you about the guarantee but when you restate the balance sheet (FSA synthesis chapter), should it be shown in the B/S?
tom18606 Wrote: ------------------------------------------------------- > Anish, > > I agree with you about the guarantee but when you > restate the balance sheet (FSA synthesis chapter), > should it be shown in the B/S? oh, Yes, you do. Add the PV of the commitment,gaurantee, or contingency to both assets and liabilities if enough info is given to calculate that. Anish