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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:
  • Using Pension Disclosures to Understand the Underlying Economic Position
  • Accumulated Benefit Obligation (ABO)
  • Vested Benefit Obligation (VBO)
  • Balance Sheet Recognition of Pension Liabilities Under U.S. GAAP
  • Reclassifying Pension Related Cash Flows for Analysis Purposes
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    This entry was posted on Saturday, August 25th, 2007 at 7:00 am and is filed under Accounting, Financial Statement Analysis, Fundamental Analysis. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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    Translating Foreign Subsidiary Balance Sheet – Illustrating the Temporal Method »