Wiley Pension Correction – in case it kept you confused like me….

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  • January 16, 2010 at 3:26 am #157126
    Anonymous
    Inactive

    Hey Everyone!

    I just wanted to make inform you about a mistake in Wiley book about pension, in case you dont already know. Its the Pension simulation, the way they’ve calculated ending PBO is wrong. You dont add/subtract all five components that you use in calculating Pension cost while calculating ending PBO. The example does it right. This is how ending PBO is calculated

    Beginning PBO

    + Service Cost

    +interest Cost

    -Benefit

    Ending PBO.

    Hope this helps. This kept me confused for a real long time so just making sure it doesnt happen to anyone else.

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