FAR 7_03

• The obligation is attributable to employees’ services already rendered
• The employees’ rights accumulate or vest
• Payment is probable, and
• The amount of the benefits can be reasonably estimated.

The PV of future benefits that have vested

The PV of all future benefits expected to be paid as of the measurement date.

During the attribution period which is generally the date of hire until the full eligibility date.

• S – I – R --- A – G – E
• S = Current Service Cost
• ------------(display current service cost separately from the remaining items in Operations)
• -------------the following are displayed below Income from Operations)
• I = Interest Cost
• R = Return on Plan Assets
• A = Amortization of prior service cost
• G = Gains/Losses
• E = Expense Transition Amt

The amount in OCI / average remaining service period

• Corridor Approach: Unrecognized G/L – (10% of the greater of APBO or Market Related Value) = Excess
• Take the Excess / Average Remaining Service Life = Amortization of G/L

• Fair Value of Plan Assets – APBO = Funded Status
• IF Positive (assets > liability) = asset on the balance sheet
• IF Negative (liability > assets) = liability on the balance sheet