An increase in the assumed rate of salary progression increases the projected benefit obligation. The higher the salary levels are at retirement, the higher the PBO. When the obligation increases, it is reported as a loss.
2. U.S. GAAP requires that actuarial gains and losses be included among OCI items in the statement of comprehensive income, thus subsequently become part of AOCI.

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The Answer of An increase in the assumed rate of salary progression increases the projected benefit obligation. The higher the salary levels are at retirement, the higher the PBO. When the obligation increases, it is reported as a loss.
2. U.S. GAAP requires that actuarial gains and losses be included among OCI items in the statement of comprehensive income, thus subsequently become part of AOCI.

An Increase in the Assumed Rate of Salary Progression Increases