Actuarial Gain or Loss

Actuarial Gain or Loss

Actuarial gains or losses refer to the differences between company’s actual pension payments and expected pension payments that are based on actuarial assumptions. Actuarial gain arises when the actual pension payments are lower than expected while actuarial loss arises if the actual pension payments are higher than expected. Any gain or loss outcome is reflected in actuarial adjustments made to pension liability.

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