spreads

I made up my own.

For Pension Expense: "Sharp Edge Invites An Accident"

Service Cost +
Expected Return +
Interest Cost +
Amortization of Actuarial Loss +
Amortization of Prior Service Costs

I have the two A's at the end so I can remember this is the formula with both amortized factors in the equation.


For PBO Reconciliation:

"Bad Swearing Is An Awful.......Bastard!"

Beginning PBO +
Service Cost +
Interest +
Amendments to Plan +(-)
Actuarial (gains) losses -
Benefits Paid

= Ending PBO



For Plan Assets Recon : "Brave Attempt Cuts.....Boredom"

Beginning Fair Value +
Actual Return +
Contributions -
Benefits Paid

= Ending Fair Value

I deliberately put the negative values at the end after the dotted section for ease of memory.



Edited 1 time(s). Last edit at Thursday, June 2, 2011 at 03:47PM by EoghanLyons.