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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

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Thanks for the explanation!

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