## Actuarial Gains & Losses
### What Are They?
Changes in the DBO or Plan Assets arising from:
- Differences between earlier actuarial assumptions and actual outcomes (experience adjustments)
- Revisions to actuarial assumptions (e.g., new discount rate, new salary increment estimate)
Common triggers: change in discount rate, change in expected salary increments, change in employee turnover/mortality.
### On DBO
| Situation | Result | P&L Impact | Journal Entry |
|---|---|---|---|
| DBO increases unexpectedly | Actuarial Loss | Charge to P&L | Dr Actuarial Loss / Cr DBO |
| DBO decreases unexpectedly | Actuarial Gain | Credit to P&L | Dr DBO / Cr Actuarial Gain |
### On Plan Assets
Plan assets are always measured at fair value. The gap between actual return and expected return = actuarial gain/loss.
```
Actual Return on PA = Expected Return + Actuarial Gain on PA
= Expected Return − Actuarial Loss on PA
```
| Actual Return > Expected | Actuarial Gain → P&L credit |
| Actual Return < Expected | Actuarial Loss → P&L debit |
> Under AS 15, all actuarial gains and losses go directly to P&L (unlike Ind AS 19 where they go to OCI).