If the Accumulated Other Comprehensive Income (G/L) account is less than the corridor, the net gains and losses are subject to amortization.

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The corridor approach is a method used in pension accounting where if the accumulated other comprehensive income (G/L) exceeds the corridor (which is typically 10% of the greater of the plan assets or the pension obligation), only then are the net gains and losses subject to amortization over the expected average remaining service lives of the employees. If it is less than the corridor, no amortization is required.

If the Accumulated Other Comprehensive Income (G/L) Account Is Less