[donnychristal]

are they the same thing?

also are Pension benefit asset and fair value of the plan asset the same thing?

I am so confused

FAR - 75
AUD - 64/71
BEC - 85

[acamp]

Here is my guess:

Obligation: Actuarial estimate of the amount of assets needed at a given point in time (say, the balance sheet date) required to service all future pension payments.

Liability: Difference between the obligation and the ACTUAL assets the plan has.

Thus, actuaries calculate that the plan needs $10,000,000 to service the pension, plan has $9,000,000 in assets; thus $1M liability (I think lol).

Also, I think the plan assets are always valued at fair value.

Ninja + Wiley Test Bank: [FAR - 81] [REG - 76] [BEC - 88] [AUD - 73](doh!)

Becker Videos: [AUD - 82]

California CPA

[Author]

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