How is the funded status of a pension plan recorded in the financial statements?
Funded status refers to if the pension plan is overfunded or underfunded. If the pension plan is overfunded, then the difference is recorded in the non-current asset section of the balance sheet.
If the plan is underfunded, then the difference is recorded in the liability section of the financial statements. Classification between current and non-current liability is based on what amount of the pension is expected to be due in the next 12 months.

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How to calculate the project benefit obligation?
Basically, you need to roll forward the obligation balance from the beginning of the year (i.e. which equals end of prior year), and then factor in the items listed in the rollforward below. That will get you to your ending PBO, and that is what is recorded on the balance sheet as the ending liability...
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How to calculate whether or not the plan asset is overfunded or underfunded?
A company’s funding status will relate to the required disclosure that companies must make regarding the status of its existing pension funds. The funded status of a pension plan will be computed as follows: Overfunded status: If the fair value of the plan’s assets are greater than the projected benefit obligation, the funded status will...
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What items increase the pension benefit obligation and what items decrease the pension benefit obligation?
There are five main items that either increase the PBO (increase the liability) or decrease the PBO (decrease the liability. The items that will increase the PBO include interest cost, service cost, and actuarial losses. The items that decrease the PBO (reduce the liability) include actuarial gains and benefits paid to retirees.
How to calculate the project benefit obligation?
Basically, you need to roll forward the obligation balance from the beginning of the year (i.e. which equals end of prior year), and then factor in the items listed in the rollforward below. That will get you to your ending PBO, and that is what is recorded on the balance sheet as the ending liability...
How to calculate whether or not the plan asset is overfunded or underfunded?
A company’s funding status will relate to the required disclosure that companies must make regarding the status of its existing pension funds. The funded status of a pension plan will be computed as follows: Overfunded status: If the fair value of the plan’s assets are greater than the projected benefit obligation, the funded status will...
What items increase the pension benefit obligation and what items decrease the pension benefit obligation?
There are five main items that either increase the PBO (increase the liability) or decrease the PBO (decrease the liability. The items that will increase the PBO include interest cost, service cost, and actuarial losses. The items that decrease the PBO (reduce the liability) include actuarial gains and benefits paid to retirees.