Funded Status (Pension)

Definition: The funded status determines whether a defined benefit pension plan is overfunded (asset) or underfunded (liability) on the sponsor's balance sheet…

Equation

Funded Status = Fair Value of Plan Assets − Projected Benefit Obligation (PBO)

The funded status determines whether a defined benefit pension plan is overfunded (asset) or underfunded (liability) on the sponsor's balance sheet. Required disclosure under ASC 715 / IAS 19.

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