Deficit: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson m (Added more space so that calculations are clearer) |
imported>Doug Williamson (Align presentation of formula with qualification material) |
||
| Line 4: | Line 4: | ||
For example; | '''For example;''' | ||
if the liabilities were 100 | if the liabilities were 100 | ||
| Line 12: | Line 12: | ||
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%.) | ||
Revision as of 15:32, 14 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.
