Facts
An entity has a defined benefit pension plan. As of January 1, 20X4, these values relate to the pension scheme:
• Fair value of plan assets: $50 million
• Present value of defined benefit obligation: $45 million
• Cumulative unrecognized actuarial gains: $8 million
• Average remaining working lives of employees: 20 years
At the end of the period at December 31, 20X4, the fair value of the plan assets has risen by $5 million.
The present value of the defined benefit obligation has risen by $3 million. The actuarial gain is $10 million, and the average remaining working lives of the employees is 20 years. The entity wishes to know the difference between the corridor approach and the full recognition of actuarial gains and losses.
Required
Show how the actuarial gain or loss for the period ending December 31, 20X4, could be recognized in the financial statements.