Actuarial Gains and Losses

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
STFC had been pooling the net liabilities and the unrecognized actuarial gains and losses along with prior service costs recorded in accumulated other comprehensive income for pension and postretirement benefits to affiliated companies pursuant to a quota share reinsurance agreement or pooling agreement.
It disclosed the following in its 2013 Form 10-K: "Under the new accounting method, Lexmark immediately recognizes the change in the fair value of plan assets and net actuarial gains and losses in pension and other postretirement benefit plan costs annually in the fourth quarter of each year and in any quarter during which a re-measurement is triggered."
In our view, the deferral and amortization of actuarial gains and losses is logically consistent with the long-term focus inherent in a funding-based approach to measuring pension cost.
The line item for actuarial gains and losses should be broken out into the subcomponents "from experience" and "from assumptions changes." Significant pension, ORB, and OPEB programs should be presented individually in a separate column along with an "all other" column, if applicable, and a "total" column for each line item.
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.
For example, it correctly states that Austrian and German rules allow the immediate recognition of all actuarial gains and losses, but wrongly describes this as an inconsistency between Austrian/German rules and IAS.
[+ or -] Amortization of Actuarial Gains and Losses
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.
Under MTM accounting, the company now plans to recognize pension and OPEB actuarial gains and losses, largely related to changes in discount rates and differences between expected and actual plan asset returns, in the fourth quarter of the year they are incurred rather than amortizing them over time.
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. In addition, the employer will close the Statement no.
Full browser ?