How does the change in the PBO occur?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 23Q: What are the strengths and weaknesses of IRR?
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How does the change in the PBO occur?

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Step 1

Projected Benefit Obligation:

 

It is a pension concept in accounting as it is the present value of the employee’s pension. It is the amount the company needs now in pension plan to cover future pension obligation.

 

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