Final answer:
Companies must disclose the reconciliation of their projected benefit obligation and fair value of plan assets for transparency and accountability in pension plans.
Step-by-step explanation:
Companies must disclose a reconciliation of how the projected benefit obligation and the fair value of plan assets changed during the year either in their financial statements or in the notes.
This requirement is part of the pension accounting regulations enforced by the government. By disclosing this information, companies ensure transparency and accountability in their pension plans, providing employees with a clearer understanding of how their pension accounts are managed.