Are pension liabilities on balance sheet?

If the company chooses to bear the pension commitments on its own, a pension liability is reported on the balance sheet. The pension liability must be reported as a provision on the balance sheet under Provisions for pensions and similar obligations.

What is measured by the projected benefit obligation?

A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the present time to cover future pension liabilities. Projected benefit obligation (PBO) assumes that the plan will not terminate in the foreseeable future and is adjusted to reflect expected compensation in the years ahead.

What is measured by the defined benefit obligation the pension?

3 Pension—accumulated benefit obligation definition. The accumulated benefit obligation (ABO) is the actuarial present value of expected future benefit payments attributed by the pension benefit formula based only on the employees’ accumulated service to the measurement date.

Which of the following constitutes the projected benefit obligation?

A projected benefit obligation (PBO) is the estimated present value of an employee’s pension, under the assumption that the employee continues to work for the employer. This information is needed by the employer to account for a pension liability, but is only needed when the pension is of the defined benefit variety.