Question
Asked Jan 22, 2020
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Describe the accounting for actuarial gains and losses.

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Expert Answer

Step 1

Plan assets: Assets which are created, maintained and planned for a specific purpose or benefit is termed as plan asset. The contribution of both the employer and beneficiary is encouraged by the management and maintained by the officer appointed for pension planning. These contributions are distributed to various investments which yield good rate of return.

Step 2

Actuarial loss or gain: If the expected return or the returns which are planned from the plan assets are more than the actual return received then it is actuarial loss If the expected return or the returns which are planned from the plan as...

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