This video shows how to calculate the Projected Benefit Obligation in the context of pension accounting. The PBO is the present value of vested and non-vested retirement benefits owed by a firm, based on its employees’ projected future salaries. The PBO is affected by service cost, interest cost, plan amendments, actuarial gains or losses, and benefits paid to retirees. The video contains a comprehensive example and formula to demonstrate how to calculate the PBO.