The projected benefit obligation (PBO):
A) includes service cost, accrued interest, revised estimates, plan changes, and benefit payments.
B) is not contingent upon an employee's continuing service.
C) is discounted present value of retirement benefits calculated with no attempt to forecast future salaries.
D) is present value of retirement benefits calculated by including projected salaries.

Question

24-10-2019
Business

contestada

The projected benefit obligation (PBO):
A) includes service cost, accrued interest, revised estimates, plan changes, and benefit payments.
B) is not contingent upon an employee's continuing service.
C) is discounted present value of retirement benefits calculated with no attempt to forecast future salaries.
D) is present value of retirement benefits calculated by including projected salaries.

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jepessoa jepessoa · Answer 1 · 2019-10-29T02:28:36+01:00

Answer:

The answers are:

A) includes service cost, accrued interest, revised estimates, plan changes, and benefit payments.

D) is present value of retirement benefits calculated by including projected salaries.

Explanation:

The projected benefit obligation (PBO) refers to the present value of an employee's pension. Companies need to know how much money do they need right now to cover their future pension obligations as employers. The PBO is a pension concept and it is included in the balance sheet.