A company sponsors a defined benefit pension plan with plan assets of $1,200,000 and a projected benefit obligation (PBO) of $1,400,000. Calculate the funding status of the pension plan. Discuss the significance of pension plan accounting in financial reporting and the implications of an underfunded or overfunded status. Analyze the impact of changes in discount rates, actuarial assumptions, and investment returns on the pension plan’s funding status. Consider the strategic importance of managing pension plan liabilities, including funding policies, investment strategies, and risk management. Discuss the role of pension plan accounting in corporate financial planning, budgeting, and performance evaluation. Explain how pension plan obligations and funding status are disclosed in financial statements and the importance of transparency and accuracy in reporting. Discuss the potential impact of pension plan accounting on the company’s financial position and performance.