A method used in accounting for pensions to compute the service and interest components of net periodic pension cost.
benefit/years of service method
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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.