Analysis of Pensions and other PBOs
The analysis of a company’s pension liability (or asset) and other PBOs can often be tricky. One reason is that many assumptions are used in pension accounting and these assumptions are generally at the discretion of management. The Wall Street Journal had an interesting article on BT Group’s pension. While you may not be interested in BT Group, the article makes one think about how to treat pension analysis given the current economic reality.
You can read the article here.
