Answer
1. Projected benefit obligation (PBO)
This method utilizes past and present data to develop estimates on how much an entity will need to satisfy its pension obligations.
2. Vested benefits obligation (VBO)
This method holds terms constant by using the present data only to measure benefit obligations. This method doesn't consider future participation in the plan.
3. Accumulated benefit obligations (ABO)
This method looks at the present value of future benefits receivable by employees with respect to current employment terms.
Work Step by Step
As summarized above.
