VBO < ABO < DBO, agreed?

Is this because VBO takes care of vested employees only, thus low PV of benefits? ABO is higher than VBO because it also covers non-vested workers as well. 1) Is PBO basd on all employees? I would think that. 2) Why is it higher than ABO which includes everyone? DBO must be calculating something differently…hmmm … painfully trying to recall things I knew too well a few months go.

This is true in the sense that: PBO: computed base on the assumption of salary increase ABO: current salary VBO: depends on the vested schedule. Anyone?

dude what’s a DBO. do you mean PBO? if so, stop making crucial typo’s at this late stage in the game and making ppl think they’ve forgotten stuff.

Don’t be surprised if you see it DBO and not PBO on the exam! At least judging by CFAI newsletter that said IFRS shall rule, PBO does not exist for the exam. There…you learned something useful.

ABO assumes there are no salary increases. PBO assumes there are salary increases. That’s why it’s higher.

Dreary Wrote: ------------------------------------------------------- > Don’t be surprised if you see it DBO and not PBO > on the exam! At least judging by CFAI newsletter > that said IFRS shall rule, PBO does not exist for > the exam. There…you learned something useful. What does DBO stand for? I take it it’s the same as PBO? Also what’s the VBO? When talking about the vesting period in this case what exactly are they referring to?

is this for real? is there actually a dbo? is it mentioned in the books?

dbo=defined benefit oblig. IFRS pbo = projected benefit oblig. GAAP

Thanks, one last Q, what’s the VBO? When talking about the vesting period in this case what exactly are they referring to?

ahhh, thanks dreary & cpk123.

you will be paid your pension benefits only if you serve in this company for 5 years. Up until then you are not eligible. 5 years is the vesting period for the employee.

VBO — ABO ---- PBO(DBO) Listed from least comprehensive to most. VBO: Only PV of vested benefits to date. Assumes none of the future benefits will vest. Assumes no change in future compensation. (IFRS requires assumption of probability of vesting) ABO: Accumulated to date, including actuarial PV of vested and non-vested, but still no growth assumption PBO: Accumulated to date including vested and non-vested as well as growth assumption.