An off-balance sheet asset created under FAS 87 rules when pension plan assets exceed the projected benefit obligation ( PBO) at the date that FAS 87 rules are implemented. The amount of the off-balance sheet asset is the amount of the excess. This asset is amortized - usually over the projected remaining service lives for employees expected to receive benefits. The amortization reduces the reported benefit expense of the sponsoring firm. The unamortized remaining balance of the transition asset is disclosed in a footnote to the financial statements as unrecognized initial net gain. American Banker Glossary
Financial and business terms. 2012.