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.
References in periodicals archive ?
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.
The Group recognises actuarial gains and losses immediately in shareholders' equity as of January 1st 2006 and thus replaces the corridor policy allowing deferred recognition of net actuarial gains and losses.
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.
The Group will recognize the net liability for defined benefit post retirement schemes on the Balance Sheet and will take actuarial gains and losses on a systematic basis to the Profit and Loss Account, in accordance with the permitted methods of recognition under the standard.
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.