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Question 21Q

Expert-verified
Intermediate Accounting (Kieso)
Found in: Page 1161

Short Answer

Describe the accounting for actuarial gains and losses.

A pension plan administrator refers to the group of people or a section of a department in an organization responsible for handling each employee's pension plans.

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Step by Step Solution

Introduction:

Actuarial gains and losses arise due to the difference in the amounts of actual and expected payments prescribed by the organization's actuary under the pension worksheet.

Accounting for actuarial gains and losses:

When an organization faces an actuarial gain or loss, that must be balanced with the amount of estimated pension payment to indicate a more precise and accurate value of the total pension benefit obligations. The amount of adjustments made should be reputed in an organization's financial statements at the end of each accounting period.

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