I am a bit confused on the economic pension expense. There are 2 ways to calculate it:
1/ it corresponds to the sum of the changes in the PBO (excluding benefit paid) less the actual return on plan assets,
2/ it corresponds to the change in the funded status excluding employer contribution.
Am I correct?
Thankx,作者: mengxu 时间: 2011-7-11 19:14
I second this after trying to find a 2nd way to do it to double check myself it got messy. the 2 equations are the same thing I think.作者: cv4cfa 时间: 2011-7-11 19:14
OK,
Thank you for the answer and I ll try to remember that !
