Companies must disclose a reconciliation of how the projected benefit obligation and the fair value of plan assets changed during the year either in their financial statements or in the notes.

Question

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This is a requirement under accounting standards for employee benefit plans, specifically under ASC 715 for US GAAP and IAS 19 for IFRS. The purpose of this reconciliation is to provide transparency and understanding of the changes in pension plan funding and the impact on the company's financial statements.

Companies Must Disclose a Reconciliation of How the Projected Benefit