标题: FSA:employer contribution and CFO [打印本页] 作者: mdfb79 时间: 2011-7-13 13:16 标题: FSA:employer contribution and CFO
when adjust NI to get CFO, why need to add employer contribution back to CFO? should employer contribution already have substraced from NI ? Thanks.作者: kkn006 时间: 2011-7-13 13:16
yeah but you add it back cuz it's a noncash expense? Post an example作者: ninja1024 时间: 2011-7-13 13:16
Employer contribution is not part of pension expense and therefor would not be included in NI calculation. Starting with NI in the indirect method, in order to correctly get CFO, you must add back this non cash pension expense (or deduct it if it pension expense is negative in the case of #36 CFAI Mock PM) and then include the actual cash expenditure of employer contributions. Does that help?作者: Uranus08 时间: 2011-7-13 13:16
helps. thanks.
westibbs Wrote:
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> Employer contribution is not part of pension
> expense and therefor would not be included in NI
> calculation. Starting with NI in the indirect
> method, in order to correctly get CFO, you must
> add back this non cash pension expense (or deduct
> it if it pension expense is negative in the case
> of #36 CFAI Mock PM) and then include the actual
> cash expenditure of employer contributions. Does
> that help?作者: ayaz_mahmud369 时间: 2011-7-13 13:16
adjustment to NI to arrive at CFO with indirect method:
NI+reported pension expense-Employer contribution
that is what BSAS says.
