BelalM

ok, that's different than what you posted initially then. It's confusing because if you have a formula that is solving for a DB Liability as a positive value, and a DB asset as a negative value (as is done in the example in the text), you have to subtract unrecognized losses:

Defined Benefit Obligation from Balance Sheet
– unrecognized actuarial losses (or plus unrecognized gains)
– unrecognized past service cost
– value of plan assets from Balance Sheet
= Defined Benefit Liability (or if this amount is negative, DB Asset)

If you're doing it the way people seem most comfortable here, which is to solve for DB asset as a positive value, then it's basically just the reverse:

Fair value of Plan Assets
+ unrecognized actuarial losses (or less gains)
+ unrecognized past service cost
+ unrecognized transition (assets) or liabilites
– Defined Benefit Obligation
= Defined Benefit Asset (negative value is a liability)

The formula you just used is basically the same as this one here, because
funded status = Fair V of plan Assets - DBO, sooo

Funded Status
+ unrecognized actuarial losses (or less gains)
+ unrecognized past service cost
+ unrecognized transition (assets) or liabilites
= Defined Benefit Asset (negative value is a liability)


Still leaves me with the same dilemma of not really understanding why having more unrecognized losses and costs increases your DB Asset tho... still hazy on that.