Pensions

Question 1

How is pension expense calculated ?

Answer 1

PRIUS

Prior service cost amortization 
- Return on  plan assets (estimated)
\+ Interest
\+ Unexpected loss (-gain)
\+ Service cost 

Interest is beginning PBO x interest rate

Question 2

What benefit levels are reflected for :

1. Project benefit obligation (PBO)
2. Accumulated benefit obligation

Answer 2

1. Project benefit obligation (PBO)
   Future compensation levels
2. Accumulated benefit obligation
   PV of pension benefits accrued based on present compensation levels

Question 3

Financial statement disclosures:

Answer 3

Pension funding policies

Types of assets held

Estimated contribution for next period

Benefits to be paid by year for 5 years

Next 5 years of benefit in aggregate

Question 4

Where are pension gains and losses recorded?

Answer 4

OCI