[jasonrobbins]

I’ve read Becker 3x and about every thread relating to this on A71 and I’m still confused…

1) How are pension gains/losses calculated? Is it the difference between the expected return and actual return? That’s what Becker suggests. A return is different from a gain, so the R in SIR AGE relates to the gain or the return? Or is the gain and return the same thing? Ahhhh!!

2) To use the corridor approach, you take the unrecognized gains at the beginning of the year and multiple that by the greater of 10% of the PBO or the Plan Assets. How are the unrecognized gains calculated?

Also, what if the unrecognized gains or losses do not exceed the 10% threshold, do they just sit in AOCI?

This is honestly the only thing I’m confused about with pensions- everything else is not so hard to understand…

AUD- 97 1x
REG- 81 1x
BEC- 79 1x
FAR- 88 1x

DONE!

10/1/12 to 2/28/14

[musicamor]

1) Gain and return are not the same. A gain in in the pension calculation is the result of comparing expected return with actual return on plan assets.

2) If the 10% rule is not met, it is unrecognized. Yes, unrecognized sits in AOCI until it is recognized, and then it is reclassed to the income statement.

Texas CPA - licensed in 2012!!!

[musicamor]

1) Gain and return are not the same. A gain in in the pension calculation is the result of comparing expected return with actual return on plan assets.

2) If the 10% rule is not met, it is unrecognized. Yes, unrecognized sits in AOCI until it is recognized, and then it is reclassed to the income statement.

Texas CPA - licensed in 2012!!!

[teeteenounouche]

This is all GREEK to me, ugh!

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[teeteenounouche]

This is all GREEK to me, ugh!

Florida:
AUD: 73, 81! Thank you Lord!
BEC: 73, 77! Thank you Lord! and WTB
REG: 71, 82! Thank you Lord! and A71
FAR: 72, 78! Thank you God and my Mommy in Heaven!

CPA Excel, Ninja Notes & Audio, Wiley Test Bank, CPAreviewforfree

[Author]

Replies