Difference between revisions of "Accrued Benefit Cost Method"
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[[Category: CAS 412 - Pension Costs]] | [[Category: CAS 412 - Pension Costs]] | ||
[[Category: Definitions]] | [[Category: Definitions]] | ||
Latest revision as of 11:03, 28 March 2015
Definition
Accrued benefit cost method means an actuarial cost method under which units of benefits are assigned to each cost accounting period and are valued as they accrue; that is, based on the services performed by each employee in the period involved. The measure of normal cost under this method for each cost accounting period is the present value of the units of benefit deemed to be credited to employees for service in that period. The measure of the actuarial accrued liability at a plan's inception date is the present value of the units of benefit credited to employees for service prior to that date. (This method is also known as the Unit Credit cost method without salary projection.)
