unrecognized gain

Fitch also views this unrecognized gain as potentially a source of capital, tapped in the event of unforeseen large unexpected losses, which also helps to mitigate lower than peer capital ratios.

Compare beginning AOCI subject to amortization to the "corridor." The corridor, used to determine the materiality of accumulated unrecognized gain or loss, is the greater of 1) 10% of the beginning balance in the PBO or 2) the market-related value of plan assets.

453A(c)(3) defines deferred tax liability as the amount of unrecognized gain on the installment note obligation as of the close of the tax year multiplied by the maximum rate of tax in effect for the taxpayer.

The court concluded that an unrecognized gain "does not rise to the level of income" and is not an "item of income for tax purposes" under Sec.

The assets and liabilities are deemed transferred to a new section 987 QBU with the assets booked up from their historic rates to reflect the unrecognized gain. This method is available only to taxpayers whose prior section 987 method was reasonable.

For our company above, here is how the FAS 88 impact might work: Before Settlement Impact of Settlement Projected Benefit Obligation $ (100,000,000) $ 40,000,000 Assets 120,000,000 (42,000,000) Funded Difference 20,000,000 (2,000,000) Transition Obligation 5,000,000 0 Prior Service Cost 0 0 Unrecognized Gain (35,000,000) 15,588,000 (Accrued)/ Prepaid Pension Expense $ (10,000,000) $13,588,000 After Settlement Projected Benefit Obligation $ (60,000,000) Assets 78,000,000 Funded Difference 18,000,000 Transition Obligation 5,000,000 Prior Service Cost 0 Unrecognized Gain (19,412,000) (Accrued)/ Prepaid Pension Expense $ 3,588,000

The court further found that unrecognized gain is conceptually different from discharge-of-indebtedness income.

The assets of the Section 987 QBU are booked up from their historic rates to reflect that unrecognized gain.