标题: Actuarial gain: added or subtracted? [打印本页] 作者: Kapie 时间: 2011-7-13 15:11 标题: Actuarial gain: added or subtracted?
CFAI Volume 2 Page 134: If actuarial gains are supposed to be subtracted from PBO, why is the actuarial gain of 784 being added?
I thought maybe it's actually a loss but just put into a line item called actuarial gain, but the answer to #11 also callls it a gain.作者: 19831985 时间: 2011-7-13 15:11
To reconcile PBO, you add your losses and subtract your gains.
NO EXCUSES作者: SeanWest 时间: 2011-7-13 15:11
so actuarial gains added to P/E and subtracted from PBO, and vice versa, got it thx作者: Pegasus2008 时间: 2011-7-13 15:11
expected return + actuarial gain = actual asset returns. as this is part of plan assets it is added - a loss would be subtracted.
actuarial gain for the PBO decreases it作者: firat 时间: 2011-7-13 15:11
PBO is already negative. (it is a liability).
Actuarial Gain on it makes it less negative....
(which is it decreases it, numerically).
CP作者: SFoyil 时间: 2011-7-13 15:12
what is the impact on pension expense of an actuarial gain? we should add it back to increase the pension expense right?作者: 5566 时间: 2011-7-13 15:12
wonder2008 Wrote:
-------------------------------------------------------
> what is the impact on pension expense of an
> actuarial gain? we should add it back to increase
> the pension expense right?
No. A gain reduces our expense and a loss increases our expense. You should add expenses and subtract gains.
Look at the pension expense formula. We are subtracting our expected return on assets since it reduces our expense, right? Follow the same logic.
NO EXCUSES作者: kickthatcfa 时间: 2011-7-13 15:12
To add more (bpdulog/cpk correct me if I'm off):
Actuarial gains decrease pension expense (PE goes from 500 to 400), decrease PBO (PBO goes from 200 to 100), and increases FVPA (since Actual Returns = Expected Return + Actuarial gains and FVPA = Actual Returns + Emp Contr - Benefits)
Actuarial losses increase pension expense (PE goes from 500 to 600), increase PBO (PBO goes from 200 to 300), and decreases FVPA (since Actual Returns = Expected Return - Actuarial losses and FVPA = Actual Returns + Emp Contr - Benefits)作者: firat 时间: 2011-7-13 15:12
Yes, in the same example you are looking at actuarial gain is reported two times, once in the DBO as 925, and in plan assets as 784, so only the 784 amount is related to plan assets.作者: tikfed 时间: 2011-7-13 15:12
oh yea of course. youve got to add the actuarial gain that you find in the FVPA assets section. good catch.作者: Uranus08 时间: 2011-7-13 15:12
in assets add, in liabilities subtract
assets
fv end = fv beg +er conts-benefits pd +exp return on assets +/-actuarial gains/losses on assets
liab
pbo end= pbo beg+csc+ic-benefits pad +/-actuarial loss/gains
