Alternative methods exist for the measurement of the pension obligation (liability). Which measure requires the use of future salaries in its computation?

پنشن کی ذمہ داری (ذمہ داری) کی پیمائش کے لئے متبادل طریقے موجود ہیں۔ کس اقدام کے لئے اس کی گنتی میں مستقبل کی تنخواہوں کے استعمال کی ضرورت ہے؟
Answer: Projected benefit obligation
Explanation
  • Projected Benefit Obligation (PBO) considers future salary increases when calculating pension liabilities.
  • Other methods, like the Accumulated Benefit Obligation (ABO) or Vested Benefit Obligation (VBO), do not factor in future salary growth.
  • This question appeared in Past Papers (2 times)
    Senior Auditor Past Papers and Syllabus (2 times)
    This question appeared in Subjects (1 times)
    ACCOUNTING (1 times)

    Install this app on your device for quick access right from your home screen.