It must also clearly describe the reasons for actuarial gains and losses
from the previous year, and any changes in assumptions and their impacts.
The most far-reaching change is that actuarial gains and losses
will be immediately reported in other comprehensive income (OCI) and will no longer be amortized to earnings.
Then, the adjusting entry will create accounts as needed for accumulated other comprehensive income items describing deferred prior service costs and actuarial gains and losses
Stora Enso also said that it has changed its accounting policy with respect to the recognition of actuarial gains and losses
arising from defined benefit pension plans.
These actuarial gains and losses
are amortized if they exceed 10 percent of the greater of the PBO or Plan Assets.
The IASC has gone beyond the FASB, moving toward faster or immediate recognition of certain actuarial gains and losses
and plan amendments something once proposed by the FASB but not adopted in its "evolution" of benefits accounting standards.
One amendment, to IAS 19, Employee Benefits, allows entities to fully recognize actuarial gains and losses
(that is, unexpected changes in a benefit plan's value) in the period in which they occur, outside profit or loss, in a statement of changes in equity titled "statement of recognized income and expense.
gives rise to actuarial gains and losses
and the repricing of the liability.
That is, it should not be included with other actuarial gains and losses
accounted for under the delayed recognition provisions of the statement.
In subsequent years, additional components of expense may be needed for amortizations of actuarial gains and losses
and prior service costs arising from plan amendments.