Gains and Losses
Amortization of gains and losses from assets and actuarial assumptions
- Actuarial assumptions are subject to inaccuracies as time goes by and circumstances change.
- Gains and losses may arise from variations in assumed and actual asset rates of return and asset values themselves.
- Gains and losses may arise from changes in the assumed variables used to determine the PBO required balance.
- There is a materiality provision for determining when gains and losses are sufficiently large to require amortization (charge to expense)