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Dear Sir,
When comparing the expected values of the pension asset and the actuarial values if the actuarial values are lower we take the difference as a negative but with the liability it is taken as a positive in the same case,can you explain the logic
Asset
Expected Value = 1200
Actuarial value = 1000
Difference =(200)Liability
Expected value = 1500
Actuarial value = 1300
Difference = 300Remeasurement component = 300 – 200 = 100
DR liability 100
CR OCI 100Thank you
Asset – you are 200 worse off than you thought you were so that’s a loss
Liability – you are 200 better off than you thought you were so that’s a profit
Using your numbers it looks like the profit and loss net each other out
I’m not sure how you got a difference of 300 on the liability because 1500-1300 is 200
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