busterbluth

I'VE HAD AN EUREKA MOMENT. Just figured out why unrecognized actuarial losses need to be added back to DBO.

The reason is that unrecognized actuarial losses are those losses which have still not hit the I/S. where as "projected" DBO includes all your obligations. so to figure out the funded/underfunded status as of today, you must exclude those expenses which are not part of DBO until a later date.



Edited 1 time(s). Last edit at Friday, May 27, 2011 at 11:35PM by pepp.