Actuarial Gains and Losses

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Actuarial Gains and Losses

The actual amount a company pays on its pensions compared to previous estimates. An actuarial gain occurs if the company pays less than it thought it would, while an actuarial loss happens if it pays more than expected. Actuarial gains and losses may result in a change to a company's actuarial assumptions. See also: Actuarial adjustment.
References in periodicals archive ?
Transfer of net actuarial losses on defined benefit plans
Actuarial losses suffered on the company's defined benefit pension scheme deficit more than offset the gains.
The estimated write-down is based on the current status of unrecognised actuarial losses included in TNT's pensions, after the demerger.
31, 2004, are found in ExxonMobil's 2005 form 10-K (in millions): SFAS 87 Memorandum accounts: Plan assets $7,299 debit Projected benefit obligation 10,770 credit Deferred actuarial losses 2,638 debit Prior service costs 172 debit SFAS 87 Actual accounts: Prepaid pension cost $71 debit Accrued pension liability 1,951 credit Intangible asset 244 debit Reduction in equity related to minimum liability 975 This journal entry would be made to accomplish the conversion to compliance with the requirements of SFAS 158 (AOCI = Accumulated Other Comprehensive Income).
A 43 million euro charge linked to the amortisation of unrecognised actuarial losses in defined UK benefit plans also hurt the bottom line.
The purpose of this amendment is to prevent the interaction of the deferred recognition option and the asset ceiling from giving rise to amounts reported as gains on the occurrence of actuarial losses and past service cost, and to amounts reported as losses on the occurrence of actuarial gains.
5] If a pension plan has actuarial gains to amortize, these will reduce pension expense, and increase net income, while the amortization of actuarial losses will increase pension expense and decrease net income.
IAS 36 won't let you defer certain actuarial losses as you've done under FASB Statement 87.
The new requirement will affect stockholders' equity in many instances, but most probably in companies that sponsor dollar-per-month plans, where the projected benefit obligation is equal to the ABO, and other plans whose unfunded ABO rose as a result of actuarial losses, such as declines in asset values stemming from the stock market crash.
f) Represents actuarial losses associated with our defined benefit plans.
The amount of these losses will include adjustments for the recognition of a pro-rata share of the pension plan's accumulated unrecognized net actuarial losses currently included in Accumulated Other Comprehensive Income and the impact from allocating existing plan assets under pension regulations.
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