Guest JBY Posted January 29, 2010 Posted January 29, 2010 How do you determine net actuarial loss/(gain) in the amounts recognized in accumulated other comprehensive income.
david rigby Posted January 29, 2010 Posted January 29, 2010 Well ... other than "hire an actuary" ... - One way to do it is to "roll it forward" from one measurement date to the next: adding/subtracting the new components, such as amortization, g/l from assets during the past year, g/l from change of census data and/or change of actuarial assumptions during the last year. However, this technique usually serves as a "double-check" on the derivation. - Another way to do this is to maintain the "pre-FAS158" Accrued/Prepaid Pension Cost. That will serve as part of an "equation of balance" to help you derive, or check, the g/l. Remember, change of g/l comes from only three sources: change of assets, change of liability, or amortization. But, perhaps we are back to my first statement. Please feel free to act on that. I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
Andy the Actuary Posted January 29, 2010 Posted January 29, 2010 How do you determine net actuarial loss/(gain) in the amounts recognized in accumulated other comprehensive income. Are you asking does the determination differ post FASB 158? If that's the question, I don't believe it does. FASB158 simply accounts for stuff on the financial statement. OCI is disasterously misleading terminology. OCI is an equity item so a debit is bad and a credit is good. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
david rigby Posted January 29, 2010 Posted January 29, 2010 OCI is disasterously misleading terminology. Amen! I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.
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