U.S.GAAP requires some firms to periodically recategorize a portion of actuarial adjustment losses relating to pensions into periodic net income.

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Under U.S.GAAP, some firms are required to recategorize a portion of actuarial adjustment losses relating to pensions into periodic net income. This is known as "settlement accounting" and is required when certain events occur, such as a plan amendment or termination, that change the expected future cash flows of the pension plan.

USGAAP Requires Some Firms to Periodically Recategorize a Portion of Actuarial