Deficit: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Align presentation of formula with qualification material) |
imported>Doug Williamson (Change semi-colon to colon.) |
||
| Line 4: | Line 4: | ||
'''For example | '''For example:''' | ||
if the liabilities were 100 | if the liabilities were 100 | ||
Revision as of 09:06, 15 March 2015
1. Pensions accounting.
The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding.
For example:
if the liabilities were 100
and the assets were 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%.)
2. More generally, any financial shortfall.
