Pensions

Question 1

Overfunded - Non current asset

Answer 1

PBO Pension benefit obligation and assets are netted out for balance sheet reporting purposes.

Question 2

Pension Expense Calculation

Answer 2

PRIUS

\+ Prior service cost amortization 
-  Return on plan assets
\+  Interest 
     • Beginning PBO x Interest rate
\+  Unexpected losses or gains
\+. Service cost

Question 3

Accumulated Benefit Obligation

Answer 3

Is the present value of all unpaid future retirement benefits as if the balance sheet date based on

1. Service rendered to that date
2. Current salary levels

Question 4

Funded status

Answer 4

Funded status is the difference between projected benefit obligation and plan assets at fair value. Neither of these amounts are reported in the balance sheet (they appear in the notes only) but their differences is reported in the balance sheet as the reported pension liability for defined benefit plans.
The funded status of a benefit pension plan for a company should be reported in the statement of FINANCIAL POSITION

Question 5

Defined benefit plan

Answer 5

The reported liability for the defined benefit pension plan is the unfounded projected benefit obligation.
Annual returns retirement benefit is defined. Employer bears the risk of fund performance and it is liable for the benefits