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).
actual return on plan assets
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amortized prior service cost
Amortized prior service costs are one of the five components of pension expense. The other components are service cost, interest cost, expected return on plan assets, and amortized gains or losses.
amortized gains or losses
Often referred to as the actuarial gains or losses, this is one of five components of pension expense. The other components are service cost, interest cost, expected return on assets and amortized prior service cost.