Question 28

Some theorists argue that the best measure of the employer's defined benefit pension plan obligation is the accumulated benefit obligation.

a		Since the accumulated benefit obligation is measured using current salaries, it represents the conservative floor for a company's pension obligation to its employees.
b		It is consistent with the measurement of pension expense.
c		Since the accumulated benefit obligation is measured using future salaries, it represents the conservative floor for a company's pension obligation to its employees.
d		The accumulated benefit obligation measures the present value of the amounts that employees will receive from the pension plan once they retire.