[Verse 1] Sarah's corporation calculates each year The pension burden crystal clear Service cost accumulates as workers toil While interest compounds on the spoil The projected benefit obligation grows Like compound magic as time flows [Chorus] Service-Interest-Return makes pension expense Past service amendments change the defense Gains and losses smooth the ride Five components can't hide On the income statement line Balance sheet tells different signs [Verse 2] Expected return on plan assets gleams Reducing expense in accounting dreams But actual performance varies wide From what the actuaries decide The corridor method smooths the shock Of market's unpredictable rock [Chorus] Service-Interest-Return makes pension expense Past service amendments change the defense Gains and losses smooth the ride Five components can't hide On the income statement line Balance sheet tells different signs [Bridge] Funded status reveals the truth beneath Obligations minus assets' sheath If underfunded, liability appears Comprehensive income clears the tears Unrecognized gains postpone the pain Till amortization breaks the chain [Verse 3] Prior service costs from plan upgrades Spread across the future decades Actuarial assumptions shift and bend Discount rates that rise and descend The pension puzzle's pieces fit Between the statements they commit [Final Chorus] Service-Interest-Return makes pension expense Past service amendments change the defense Gains and losses smooth the ride Five components can't hide Income shows the yearly cost Balance sheet shows what is lost [Outro] Pension math connects the floors Between accounting's different doors
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