Fair Value of Plan Assets

Definition: Fair Value of Plan Assets is the market value of the investments held in trust to fund a defined benefit pension plan, measured under ASC 820 fair …

Fair Value of Plan Assets is the market value of the investments held in trust to fund a defined benefit pension plan, measured under ASC 820 fair value hierarchy. Plan assets typically include equities, bonds, real estate, and alternative investments. Fair Value of Plan Assets minus the Projected Benefit Obligation (PBO) equals the Funded Status of the plan, which is reported on the sponsor's balance sheet as a net pension asset (overfunded) or net pension liability (underfunded) under ASC 715 and IAS 19.