How can you tell if the difference in the defined benefit and FV of assets is a Re-measurement gain/loss?
I usually able to work out the balancing figure but which is the difference between the actuary figure and the actual plan figure.
The issue is i find it difficult to grasp whether that balancing figure is a gain/loss.
Bfwd balance +Interest +Cash paid in -Cash paid out
x
BALANCING FIGURE
Closing balance (as measured by the Actuary)
If "x" is less than the Closing Balance, then the Balancing Figure is positive and there is a remeasurement gain If "x" is more than the Closing Balance, then the Balancing Figure is negative and there is a remeasurement loss.
The former is because the actuary is telling you that your plan assets are worth more than you have calculated, whereas in the latter, s/he is telling you its worth less than you have calculated.
