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in this video were gonna talk about how to calculate the change in pension plan assets so when you look at the balance sheet of a firm and you see something like pension liability thats the funded status of the plan and weve talked about that before thats basically the net of the projected benefit obligation of the firm which is the present value of all the benefits the firm is going to have to pay ultimately to retirees its the net of that in the fair value of the pension plans assets so what the pension plan assets are its basically just a pool of assets right its a pool of assets this could be invested in a market index bond or something like that stocks bonds etc so theres a pool of assets and these assets earn a return right so theres a return on those assets and ultimately this pool of assets is intended to satisfy the PBO the projected obligation of a firm to its employees after theyve retired right so with the defined benefit pension plan now this pension plan this fa