Projected unit credit method is an actuarial valuation method that sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation (sometimes known as the accrued benefit method pro-rated on service or as the benefit/years of service method).
Projected unit credit method is specifically discussed in IAS 19 Employee Benefits.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
