What is the formula for rolling forward the fair value of plan assets?
The fair value of plan assets represents the cumulative investments (plan assets) that are being held for retiree’s (employees) and will be paid out once the pension allows for it. To roll forward the balance, you would start with the beginning fair value of plan assets (equal to prior year ending), add any contributions to the plan during the year, subtract benefits paid to retirees, and then add/subtract any return on plan assets.

Back To All Questions
You might also be interested in...
-
How to calculate the fair value of the pension plan asset?
The fair value of plan assets represents the cumulative investments (plan assets) that are being held for retiree’s (employees) and will be paid out once the pension allows for it. The formula below illustrates how to calculate the ending fair value of plan assets, which would be recorded on the asset section of the balance...
-
How to calculate the net gain or loss on plan assets throughout the year?
The first step is to calculate the expected return on plan assets. Next, you compare the expected return to the actual return, and that results in a net gain or loss, which is recorded to other comprehensive income. For example, if the company had an actual return on plan assets of $100,000 as compared to...
-
What is the journal entry to record a net gain on a pension asset?
First, you have to calculate the net gain or loss on the pension asset, which is explained here. Let’s assume that the company recorded a net gain. Since the company recorded a net gain, the gain impacts other comprehensive income. The journal entry to record the net gain would be a debit to pension asset/liability...
How to calculate the fair value of the pension plan asset?
The fair value of plan assets represents the cumulative investments (plan assets) that are being held for retiree’s (employees) and will be paid out once the pension allows for it. The formula below illustrates how to calculate the ending fair value of plan assets, which would be recorded on the asset section of the balance...
How to calculate the net gain or loss on plan assets throughout the year?
The first step is to calculate the expected return on plan assets. Next, you compare the expected return to the actual return, and that results in a net gain or loss, which is recorded to other comprehensive income. For example, if the company had an actual return on plan assets of $100,000 as compared to...
What is the journal entry to record a net gain on a pension asset?
First, you have to calculate the net gain or loss on the pension asset, which is explained here. Let’s assume that the company recorded a net gain. Since the company recorded a net gain, the gain impacts other comprehensive income. The journal entry to record the net gain would be a debit to pension asset/liability...