The above snapshot is taken from the Form 10K submitted by Coca Cola for year 2010. The snapshot is about the pension plan valuations, the assumptions used, estimated discount rate, actuarial assumptions, the return on planned asset, the estimated obligations etc. A brief overview of these terminologies has been given in the CFA Level I Curriculum under FRA while detailed discussion is found in Reading 23, Employee Compensation in FRA for Level II. How 'actually' actuarial assumptions are made is beyond the scope whereas the amount of obligation, how it is calculated, what disclosures are necessary, how change in assumptions is treated and their impact is discussed in detail. As I am done with Reading 23 and going through the snapshot for me is very enjoyable and more or less a 'real life revision'.
No comments:
Post a Comment