Pension

Question 0

How should plan investments be reported in a defined benefit plan’s financial statement?

Answer 0

At fair value

Question 1

The fund status of defined benefit plan?

Answer 1

Overfunded PBO PA

Report in statement of financial position

Question 2

Pension expense

Answer 2

1. Service cost +
2. Interest cost (at settlement rate)+
3. Actual return on plan assets= (PA end- PA beg)-(contributions-benefit paid) -
4. Amortization of PSC+
5. Gain or loss + or -

Question 3

Difference between accumulated benefit obligation and PBO

Answer 3

ABO: both vested and non vested, use only current salary level
PBO: both vested and non vested, use future salaries