Actuarial G/L

CFA Level II FRA
#1

Hi,

Would anyone kindly confirm or correct the following: Actuarial G/L represents the difference between Actual Return on Plan Assets and Expected Return on Plan Assets ?

Much appreciated,

Thanks

#2

Hi,

I’m keen to know about this also.

From what I comprehend from the notes thus far, actuaria G/L is computed based on:

  1. increase or decrease in PBO from changes in actuarial assumptions AND
  2. deferred gains or losses due to differences between actual and expected return on plan assets

Ernest

#3

Hi Ernest,

Yeah that makes sense, I think that would be the right answer. Waiting for someonelse to confirm this.

Thanks

Alex

#4

Ernest makes sense. In case of IFRS Actuarial gain losses would comprise of only changes in assumptions and not the difference between actual and expected returns as we consider net interest expenses(adjusted for income). Hope I am clear with my thoughts :slight_smile: