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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=== Deficits generally === | |||
More generally, a 'deficit' means any financial shortfall. | |||
Revision as of 12:09, 6 November 2015
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.
