Definitions as per AS 15 (R)
All definitions of terms are as per AS 15 (R). The following terms are used with explanation are given below:
Actuarial Gain or Loss
From one plan year to the next, if the experience of the plan differs from that anticipated using the actuarial assumptions, an actuarial gain or loss occurs. For example, an actuarial gain would occur if the plan assets earned 12% for the year while the assumed rate of return used in the valuation was 8%. Other causes of actuarial gains or losses would include changes in actuarial assumptions and / or demographic changes in the population profile.
Balance Sheet Asset/(Liability)
The sponsor's balance sheet asset/(liability) entry, the net recognized amount, is the sum of the cumulative excess of contributions to the plan over net Annual Expense and other plan-related charges to income due either to business combination or accelerated recognition pursuant to IAS 19. The difference between this account and the Funded Status is the unrecognized net loss/(gain) unvested prior service costs [and net transition obligation.]
This is the excess/(shortfall) of the fair value of plan assets over the Plan Liability.
This quantity is the discounted present value of all benefits attributed by the plan,s benefit formula to service rendered prior to the measurement date. It is measured using an assumption as to future pay levels.
This is the discounted present value of benefits attributed by the plan,s benefit formula to services rendered by employees during the accounting period. It is measured using an assumption as to future pay levels.
The increase in the Plan liability over the accounting period due to interest (the time value of money)
Net Periodic Benefit Cost
This is the profit and loss charge for the accounting period, and comprises the sum of the service and interest costs less the expected return on assets, plus allowance for amortization of any net liabilities not recognized in the balance sheet.