Schweser FSA - Self Test p.170

Why is the adjustment to Op. Income = reported pension expense - current service cost???

current service cost is the only expense directly related to an employee’s 1 year of serice in current period. The remaining costs are projections and contributions that are not “operating” items such as interest and provisions for expected return / contributions etc. So we remove the reported pension expense completely and add back the curren service cost hence the adjustment

Thanks for the explanation!