CERTYNEX IFRS ACADEMY

Which sentence correctly describes the projected unit credit method used to measure the obligation of a defined benefit plan?

The obligation is the present value of the total benefit expected at retirement, whatever the service earned at the measurement date, with no attribution to periods of service.

Each period of service gives rise to a unit of benefit, measured separately; the projected benefits are discounted.

The obligation equals the sum of the contributions already paid by the employer and by members, capitalised at the fund's rate of return.

The obligation is the surrender value of the rights at the measurement date, calculated from the tariffs of the insurer running the plan.