返回列表 发帖
magic i don't think yours makes sense....the actual return does not impact the reported pension expense

TOP

I dunno, the mock seemed to go about that deep. for example, they had that question about how to show an adjustment on the CF statement for pension expense, and I had no idea. I know now:

adjustment to NI under CFO = (pension expense - employer contributions)

but I had no idea until I saw the solutions.

TOP

Magic, I remember reading somewhere saying if economic expense > contribution, it is like borrowing money so you need to move (economic expense-contribution)*(1-t) from CFO to CFF. Company treats reported pension expense as CFO. Not sure if this makes sense.



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 03:44PM by madamesoleil.

TOP

Its not somewhere, its in Pension accounting adjustments to Cash flow section. lol.

TOP

^ wow, wtf is that... screw this section, right in its face

TOP

you need to add (1-t) to this correct?

adjustment to NI under CFO = (pension expense - employer contributions)*(1-t)

because you are reducing a interest-based liability

TOP

not sure, they didn't seem to do that in the mock, so I'm gonna go with no; not because I disagree with you on some fundamentals, just cuz monkey see monkey do



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 09:15PM by magicskyfairy.

TOP

if the company had employer contributions above economic pension expense if would have been like it paid off a loan, so you would add it back to CFO and subtract it from CFF (as it you were paying off principal on a loan.)

adj CFO = CFO + (economic pension expense - employer contributions)(1-t)

adj CFF = CFF - (economic pension expense - employer contributions)(1-t)

if the company's contributions were less than the expense, they didn't pay contribute enough and CFO should be brought down. Since they didn't pay enough, they essentially used pension accounting to borrow money, so CFF should be adjusted downward for the difference.

TOP

i dunno brah, look at 2011 mock afternoon session, Q36; they didn't screw around with the taxes



Edited 1 time(s). Last edit at Wednesday, June 1, 2011 at 09:33PM by magicskyfairy.

TOP

apologies, the question specifies to ignore income taxes... so there it is

TOP

返回列表