An example of a liability that requires significant judgments about certain events is the pension obligation.

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The pension obligation requires significant judgments about certain events such as estimating the assumed rate of return on plan assets, projecting future salaries and benefits, mortality rates, and other factors that affect the present value of the pension obligation. These estimates can have a significant impact on the amount of the liability recorded on the financial statements.

An Example of a Liability That Requires Significant Judgments About