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Any difference between the fair value of the assets and the value of assets based on their expected return becomes a part of the gain or loss component of pension cost. The recognition of the difference in the expected return on plan assets and the actual return on plan assets (a gain or loss) should be recognized in either in net pension cost and as part of comprehensive income in the period it arises depending on the company’s policy for recognition of gains or losses (FASB ASC 715-30-35-23).

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