Pensions Flashcards
1
Q
Projected Benefit Obligation (PBO)
A
Reflects future compensation levels
2
Q
Accumulated Benefit Obligation
A
PV of Pension Benefits accrued based on present compensation levels
3
Q
Pension Expense Calculation
A
Service Cost \+ Interst - Actual Return on Plan Assets \+ Unexpected Loss (Gains) \+ Amort. of Prior Service Cost = Pension Expense
4
Q
Service Cost
A
As employees work, the PBO increases
5
Q
Interest
A
Beginning PBO x Interest Rate
Increase in PBO due to time
6
Q
Actual Return on Plan Assets
A
Ending Value - Beginning Value net of contributions
7
Q
Fair Value of Plan Assets - PBO
A
Overfunded = Non-current Asset
Underfunded = Non-current Liability
Gains/Losses go to OCI
- Net of Tax
8
Q
Financial Statement Disclosures
A
Pension Funding Policies Types of Assets Held 5 year benefits to be paid 5 year benefits in aggregate thereafter Estimated pension contribution for next period
9
Q
Vested Benefits
A
Owed to employee regardless of continuance of employment via the Full Eligibility Date
