Pensions

Question 1

what is APBO?

Answer 1

Accumulated Pension Benefit Obligation - is the present value of future retirement payments attributed by the pension benefit formula to employee services rendered prior to that date , which is based on current salaries.

Question 2

What is PBO

Answer 2

Estimated pension plan liability at present time. PV of expected future payment. Based on the contract provision and a rural assumption

Question 3

What is a plan asset

Answer 3

Fair value of assets set aside to pay pension benefit. Increased with contribution and decreases with payment of benefits.

Question 4

What is pension expense

Answer 4

PV cost of benefits earned during the year plus and minus continuing operations.

Question 5

What is the projected unit credit method

Answer 5

The IFRS requires this method to calculate the present value of the defined benefit obligation.