Dictionary of Accounting Terms: actuarial gains, losses
actuarial gains, losses
difference between estimates and actual experience in a pension plan. For example, if the actual interest rate earned on pension assets exceeds the estimated rate, an actuarial gain results. Actuarial gains and losses are deferred and amortized to pension expense of future periods. The amortization of the actuarial gain will reduce pension expense. Actuarial gains and losses applicable to a single event not related to the pension plan and not in the ordinary course of business are recognized immediately in earnings. Examples are plant closing and segment disposal.
