Deficit

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Revision as of 10:35, 6 November 2015 by imported>Doug Williamson (Update for FRS 102)
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1. 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.


2. More generally, any financial shortfall.


See also