Pension Definitions
Minimum liability
- If the amount of the accumulated benefit obligation exceeds the fair value of the plan assets a liability must exist at least equal to that amount.
- If the needed liability does not exist you must create the additional minimum liability.
Measurement Date
- The date to be used by employers for financial reporting is the date of the financial statements.
- If used consistently the date may be up to three months prior to the date of the financial statements.