Pension - Cashflow adjustments

[archived_user]

This chapter between the CFA book and Schweser notes are killing me!
When making CF adjustments the notes compare the TPPC to the contribution.
In the book, the example compares the economic pension expense to the contribution.
So is the TPPC the same as the economic pension expense? I thought the pension expense was the portion included in the P&L. :S

 

[archived_user]

Mcfa wrote: This chapter between the CFA book and Schweser notes are killing me!
When making CF adjustments the notes compare the TPPC to the contribution.
In the book, the example compares the economic pension expense to the contribution.
So is the TPPC the same as the economic pension expense? I thought the pension expense was the portion included in the P&L. :S

Accounting pension expense is included in the P&L.
Economic pension expense – probably better called economic pension cost, as “expense” is an accounting term that, as we’ve seen, means those costs reported on the P&L – is the total cost for the pension in the period. It’s TPPC.