Accumulated Benefit Obligation

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Dictionary Says

Definition of 'Accumulated Benefit Obligation'

An approximate measure of a company's pension plan liability. The accumulated benefit obligation (ABO) is estimated based on the assumption that the pension plan is to be terminated immediately; it does not consider any future salary increases. This differs from the projected benefit obligation, which assumes that the pension plan is ongoing, and thus accounts for future salary increases.
Investopedia Says

Investopedia explains 'Accumulated Benefit Obligation'

Looking over a company's pension accounting can be an important piece of analysis for investors. Pension accounting is an area in which a company can be aggressive in many ways, such as the discount rate used for future pension obligations.
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'Accumulated Benefit Obligation'

  • A Primer On Defined-Benefit Pension Plans

    http://www.investopedia.com/articles/retirement/11/defined-benefit-pension-plans-primer.asp
    ... 2. Accumulated Benefit Obligation (ABO) The present value of the future
    retirement/pension benefits earned by an employee to date, ignoring any expected ...

  • The Investing Risk Of Underfunded Pension Plans

    http://www.investopedia.com/articles/analyst/03/050803.asp
    ... includes the current value of the plan assets that the company estimates it will
    have in the future, to the accumulated benefit obligation, which includes the ...

  • The Defined-Benefit Plan's Many Problems

    http://www.investopedia.com/articles/retirement/10/demise-defined-benefit-plan.asp
    ... Instead, the benefit estimate only takes into account her accumulated service to
    date ... to pay Linda to satisfy her company's retirement benefit obligation on the ...

  • Financial Statements: Pension Plans | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements9.asp
    ... annual report, you will see two other measures of estimated future obligations:
    the vested benefit obligation (VBO) and the accumulated benefit obligation (ABO ...

  • CFA Level 1 Study Guide - Liabilities - Accounting For Long-Term ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/long-term-liabilities-accounting.asp
    ... Demand; 3.3 Price Elasticity; 3.4 Elasticity of Demand; 3.5 Elasticity of
    Supply; 3.6 Marginal Benefit and Marginal Cost; 3.7 Market ...

  • How To Evaluate Pension Risk By Analyzing Annual Costs

    http://www.investopedia.com/articles/analyst/03/081303.asp
    ... as reading the footnotes to compare what is owed (accumulated benefits due ... the interest
    that accrued on the unfunded part of the projected benefit obligation. ...

  • Asset Distributions A Key Consideration For Retirees

    http://www.investopedia.com/articles/retirement/08/qualified-plan-distributions.asp
    ... the retirement funds they have accumulated in qualified ... in full discharge of the
    contractual obligation; a dividend ... retirement plan is defined-benefit or defined ...

  • Financial Statements: Earnings | Investopedia

    http://www.investopedia.com/university/financialstatements/financialstatements4.asp
    ... expense. A lower net pension obligation reduces the ... value equals gross asset minus
    accumulated depreciation), but ... after the income tax expense (benefit) line. ...

  • Forex Tutorial: How To Trade & Open A Forex Account | Investopedia

    http://www.investopedia.com/university/forexmarket/forex8.asp
    ... Commissions and Fees Another major benefit of forex ... on the other hand, creates the
    obligation to buy ... the position is closed and further losses are accumulated. ...

  • Austerity: When The Government Tightens Its Belt

    http://www.investopedia.com/articles/economics/11/goverment-austerity-measures.asp
    ... county and municipal governments accumulated debt at a ... Bills, municipal bonds, general
    obligation bonds, and ... a list of industries that benefit from increased ...

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