Minimum Liability
Note that the ABO is used not the PBO. Board does not permit recording of an asset if the pension plan assets are > ABO.
- If an additional liability needs to be recognized, it should be offset by recording a new intangible asset, up to the amount of any unamortized PSC.
- If the additional minimum liability exceeds the unamortized PSC the excess should be reported as a reduction of shareowner equity (net of tax).