Under the corridor approach, a company only amortizes the net accumulated unamortized actuarial gain or loss when the beginning accumulated unamortized balance of the net actuarial gain or loss exceeds the corridor.

Question

Quizplus · Accepted Answer

The corridor approach requires amortization of the net accumulated unamortized actuarial gain or loss only when it exceeds 10% of the greater of the plan's assets or liabilities, known as the "corridor."

Under the Corridor Approach, a Company Only Amortizes the Net