Could someone help me understand the logic behind the following calculation of the economic expense of the defined benefit? I don’t fully see how the calculation eliminates all amortized and actuarial gains & losses: Change in benefit obligation during period + Benefits Paid = Adjusted Obligation Change in plan assets during period - Compensation Paid + Benefits Paid = Adjusted Plan Assets Economic Expense = Adjusted Obligation - Adjusted Plan assets (p107 in CFA vol 2) Thanks a lot