How are gains or losses recognized when asset balances are reassigned between pension plans?

When asset balances are reassigned between pension plans, gains or losses are recognized as additions or deductions reflecting the reassignments. This treatment ensures that the financial statements illustrate the accurate status and changes in the assets associated with each pension plan. By recognizing these gains or losses in this manner, stakeholders can better understand how the asset allocations have impacted the plans' financial health, and it ensures transparency regarding the management of the pension funds. This approach aligns with principles of accrual accounting, where changes in assets must be reflected appropriately in financial records to convey a true picture of financial performance and position.