Wednesday 10 July 2013

CORRIDOR RULE

Today's word: CORRIDOR RULE
Theme for this fortnight: ACCOUNTING

 
 
                   An accounting standard that applies to the fluctuation of pension assets which must be reported as an increase of decrease in the value of plan assets. The rule, which requires positive or negative returns be reported if they exceed 10% of the plans assets, allows for gains and losses to spread out over time resulting in a smoothing effect.

 

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