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You are researching the solvency of an old company with a heavily unionized work force. You are sure they have a defined benefit pension plan
You are researching the solvency of an old company with a heavily unionized work force. You are sure they have a defined benefit pension plan but when you examine their balance sheet you see no entry for the funded status on either the asset or the liability side. What could be the reason for this? Their plan assets are exactly equal to their PBO They have capitalized pension expense in their work product (inventory) or they passed it through income statement via SGRA The union precludes employees from participating in company pension plans
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