Expenses recognized in the statement of income are split between operating income (for service costs rendered during the period)
and net financial income/(loss) (for financial costs and expected return on plan assets).
The amount recognized in the balance sheet corresponds to th e present value of the obligation, and net of plan assets.
When this is an asset, the recognized asset is limited to the present value of any economic benefit due in the form of plan r efunds
or reductions in future plan contributions.
Changes resulting fro m periodic adjustments to actuarial assumptions regarding general financial and business conditions or
demographics ( i.e., changes in the discount rate, annual salary increases, return on plan assets, years of service,  etc.) as well as
experience adjustmen ts are immediately recognized in the balance sheet as a separate component of equity in  “Other
reserves”  and in comprehensive income as “Other comprehensive income/loss ”.
➢ Other commitments
Provisions are funded and expenses recognized to cover the cost of providing health -care benefits for certain Group retirees in
Europe and the United States. The accounting policies applied to these plans are similar to those used to account for defined
benefit pension plans.
The Group also funds provisions for all its subsidiaries to cover seniority -related benefits (primarily long service awards for its
French subsidiaries). Actuarial gains and losses on these benefit obligations are fully recognized in p rofit or loss.
1.20  Share -based payments
The Group grants performance shares  to senior executives and certain employees.

### Language ###
English

### Assessment ###
The text contains information about where actuarial adjustments are recorded in financial statements.

### Query ###
In financial reporting, where do companies record their actuarial adjustments and demographic changes?

Note: This query is formulated in an original way by not starting with an interrogative pronoun ("where") but rather with a context-setting phrase. The query is independent of the source text and could be asked by anyone interested in accounting practices.
In financial reporting, where do companies record their actuarial adjustments and demographic changes?

Note: This query is formulated in an original way by not starting with an interrogative pronoun ("where") but rather with a context-setting phrase. The query is independent of the source text and could be asked by anyone interested in accounting practices.