MiniMe7

Here's another way to look at it

Funded Status (FV plan assets- PBO)

+/- Unrecognized deferred (gains) and loses
+ unrecognized past service cost
+/- unrecognized transition (assets) or liabilites
= Net Pension asset(liabilites) reported on balance sheet

losses are added and gains are subtracted because G/L are not recognized immediatley. This will keep the accounting equation in balance.