Deficit: Difference between revisions
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=== Deficits in pensions accounting === | |||
The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding. | The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding. | ||
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'''Example''' | '''Example''' | ||
Pension liabilities = 100 | Pension liabilities = 100. | ||
Pension assets = 90 | Pension assets = 90. | ||
The deficit would be 100 - 90 = 10. | The deficit would be: | ||
100 - 90 | |||
= 10. | |||
(Not to be confused with the percentage ''funding level'' which in this example would be 90 / 100 = 90%.) | (Not to be confused with the percentage ''funding level'' which in this example would be 90 / 100 = 90%.) | ||
Relevant accounting standards include Section 28 of FRS 102. | |||
=== Deficits generally === | |||
More generally, a 'deficit' means any financial shortfall. | |||
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* [[Amortisation]] | * [[Amortisation]] | ||
* [[Fiscal deficit]] | * [[Fiscal deficit]] | ||
* [[FRS | * [[FRS 102]] | ||
* [[Funding level]] | * [[Funding level]] | ||
* [[Multicurrency cross-border pooling]] | * [[Multicurrency cross-border pooling]] | ||
* [[Multicurrency one-country pooling]] | * [[Multicurrency one-country pooling]] | ||
* [[Surplus]] | * [[Surplus]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Identify_and_assess_risks]] | |||
Revision as of 12:54, 6 May 2020
Deficits in pensions accounting
The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding.
Example
Pension liabilities = 100.
Pension assets = 90.
The deficit would be:
100 - 90
= 10.
(Not to be confused with the percentage funding level which in this example would be 90 / 100 = 90%.)
Relevant accounting standards include Section 28 of FRS 102.
Deficits generally
More generally, a 'deficit' means any financial shortfall.
