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Does anyone know what the double entry for unregonised actuarial losses? You credit the defined benefit liability and where does the debit go?
No – I am talking about the unregonised gains/losses – i.e. the portion that is within the 10% corridor – does it get included in other comprehensive income?
Debit Income Statement.
Unrecognised Actuarial gain and losses will be included in OCI when the Corridor method is scrapped.
its unrecognised, therefore it doesn’t go in. You only recognise that which falls outside the corridor in P/L
😀 😀 .. There is no entry for that.. It is actually the experience adjustment(in plan asset) or change in actuarial assumption (in P.V of Defined Benefit Oblig) because of which actuarial difference arises. It is based on actuaries data..!!
In the Companies books only the following double entries are passed..
Opening balance of defined benefit liability is being shown in the SFP then following entries are passed in co’s books in the current year
Dr Expense for the yr (includes current service cost + interest(unwinding) + recognized past service cost +/- recognized actuarial losses/gains – expected return on plan assets)
Cr Defined Benefit LiabilityThen if we have made contribution into the fund:
Dr Defined benefit Liability
Cr CashWe’ll then arrive at our closing liability which will be shown in our books
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