Sticky Note
The projected benefit obligation is the measure of pension obligation that ______?
متوقع فائدہ کی ذمہ داری پنشن کی ذمہ داری کی پیمائش ہے جو ______؟
  1. Is not sanctioned under generally accepted accounting principles for reporting the service cost component of pension expense
  2. Is required to be used for reporting the service cost component of pension expense
  3. Requires pension expense to be determined solely on the basis of the plan formula applied to years of service to date and based on existing salary levels
  4. None of these
Explanation
  • The Projected Benefit Obligation (PBO) is the present value of pension benefits considering future salary increases.
  • It is the standard measure under Generally Accepted Accounting Principles (GAAP) for determining the service cost component of pension expense.
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