I was trying to understand how increasing the expected growth rate of planned assets not affecting funded status and the pension benefits obligation.
In Schweser, it says so, but my understanding is the following:
PBO includes actuaial gains/losses
Actuarial gains/losses include the difference between expected return and expected
so should PBO be affected if we increase the expected growth rate (this will probably generate an actuarial loss, hence increase PBO)?
Also funded status is FV of plan assets - PBO, so shouldn't it be affected by the increasing expected growth rate?
Many thanks if anymore can help me with this!!!!!作者: cpaking23 时间: 2013-5-22 03:39
Your question is very confusing. Expected growth rate of what?
