Deficit

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1.

Any financial shortfall, whether cumulative or for a single period.


2. Public finances.

A government fiscal deficit, usually for a particular period, most often a year.


3. Pensions - defined benefit schemes.

The accumulated 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.


See also