Projected Benefit Obligation (PBO)
When measuring the potential liability of a pension fund, there are several relevant measures. The Projected Benefit Obligation (PBO) represents the present value of all benefits employees are expected to earn during employment. For businesses that are assumed to be going concerns, this measure is the most appropriate estimate of the total future liability.
For more information, see all articles on: Accounting, Financial Statement Analysis, Fundamental Analysis See also:
The Intelligent Investor: The Classic Text on Value Investing
Financial Statement Analysis: A Practitioner's Guide, 3rd Edition
Managing Investment Portfolios: A Dynamic Process (CFA Institute Investment Series)