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hello and welcome to this session in which we would look at the five components of pension expense so pension expense is obviously an expense and this is something we need to report on the income statement as part of our pension accounting what are the five components first Im going to list them tell you how they affect pension expense whether they increase pension expense or the reduced pension expense then Ill explain each one separately what does it mean and how does it affect an actuality pension expense starting with something called service cost for the year and service cost will increase pension expense amortization of prior service costs will increase pension expense and including with the amortization any plan Amendment plan Amendment means plan changes interest on liability is the third component if you remember in the prior session we discussed something called PBO projected benefit obligation and we said the obligation is a liability and remember that our liability is bas
