Examlex
Select the definition for a molecule.
Interest Cost Component
The portion of pension expense that represents the increase in the projected benefit obligation due to the passage of time.
Projected Benefit Obligation
An estimate of the total amount an entity is obligated to pay in pension benefits, based on expected future salary increases.
Discount Rate
The interest rate used to discount future cash flows to present value, often used in the calculation of net present value or investment appraisals.
Service Cost
The portion of the expense of a pension plan that is attributed to the increase in pension benefits due to employee service in the current period.
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