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here i have a question like this
the actuarial value of T pension plan showed a surplus at 1 dec 2010 of $72m,representing by the fair value of the assets of $250m, the present value of the defined benefit obligation of $200m and net unrecognised actuarial losses of $22m.The corrider approach is used by the co.
the answer of this question is:
PV of obligation at 1 dec 2010 200
FV of assets at 1 dec 2010 (250)
Actuarial losses (22)the resulting answer is (72)
my real answer is why unrecognised loss of $22m is added in fv of assets or less from pv of obligations…..???
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