Term
| defined benefit obligation |
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Definition
| the present value of the future obligation |
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Term
| service cost, interest cost, expected return on plan assets (reduces pension expense), actuarial gains and losses, prior service costs |
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Definition
| For a defined benefit plan, pension expense consists of: |
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Term
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Definition
| the PV of benefits earned by the employees during the current period. They increase the benefit obligation |
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Term
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Definition
| the increase in the benefit obligation due to the passage of time |
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Term
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Definition
| the expected return on plan assets... |
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Term
| actuarial gains and losses |
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Definition
| based on assumptions the actuary makes based on the benefits to be paid in the future |
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Term
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Definition
| retroactive benefits awarded to employees when a plan is initiated or amended |
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Term
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Definition
| the difference between the defined benefit obligation and the plan assets. Represents the economic reality of the plan. |
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Term
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Definition
| value of plan assets exceeds the PV of the benefit obligation |
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Term
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Definition
| benefit obligation exceeds the plan assets |
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Term
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Definition
| Funded status is reported on the balance sheet under... |
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Term
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Definition
| overfunded amount of a pension is reported as ______ on BS |
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Term
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Definition
| underfunded amount of a pension is reported as ______ on BS |
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Term
| actuarial gains and losses; unrecognized prior services costs |
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Definition
| Under IFRS, firms remove unrecognized _______ and unrecognized ________ from the funded status. This results in a BS amount that doesn't represent economic reality |
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Term
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Definition
| Firms separately disclose the components of the benefit obligation, plan assets, pension expense, calculation assumptions (disc rate, growth rates, exp return) under... |
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