Accumulated postretirement benefit obligation requires a named plan, population, date, and evidence owner. APBO is the actuarial present value of postretirement benefits attributed to service through the measurement date. It is the obligation used with any plan assets to determine other-postretirement funded status.
Apply it
Opening APBO of $7.5 million plus $500,000 service, $450,000 interest, and $300,000 loss, less $250,000 benefits, equals $8.5 million.
Common mistake
Do not assume that aPBO and EPBO always equal each other. APBO contains the portion of EPBO attributed to service through the measurement date. That distinction controls the funded-status measure. That error would include future service in the amount used to determine current funded status.
Keep the boundary clear
APBO and EPBO are connected measures, not two recognized liabilities. Apply the other-postretirement terms rather than substituting a pension PBO.
Authority
Read ASC 715-60-35-3 for the accumulated postretirement benefit obligation.
Put the concept to work
Apply this concept
- Explain and apply accumulated postretirement benefit obligation within a reconciled employer benefit-plan workpaper using supplied authoritative and actuarial facts.
Learning resources
Choose a lesson, try an application, or inspect the sources behind this concept.
Build on these ideas
- Postretirement benefit attribution — Apply
To apply this concept: Required. This prior concept supplies the terms, date, or measurement needed here.
Lessons
Worked examples and cases
Practice
Common mistaken ideas
Sources
Standard references
Broader topics
Related concepts
Use this idea next
- Net periodic postretirement benefit cost — Apply
Required level here: apply. Required. This prior concept supplies the terms, date, or measurement needed here.