Actuarial gains or losses can arise from:
I - Employee service provided in the current period.
II - The unwinding of the discount applied to the obligation.
III - Changes to actuarial assumptions.
IV - Experience adjustments.

Question

Quizplus · Accepted Answer

Actuarial gains or losses can arise from changes to actuarial assumptions (III) and experience adjustments (IV) such as changes in mortality rates, salary assumptions, and future investment returns. These changes can result in an increase or decrease in the defined benefit plan's obligations, which can affect the plan's funded status. The unwinding of the discount applied to the obligation (II) is also a factor that can result in actuarial gains or losses as the present value of future benefits is recalculated over time. Employee service provided in the current period (I) does not typically result in actuarial gains or losses, as it is a planned and anticipated increase in the obligation.

Actuarial Gains or Losses Can Arise From