Section 96(c) in The Companies (Accounting Standards) Rules, 2006
(c)estimates of benefit improvements that result from actuarial gains that have already been recognised in the financial statements if the enterprise is obliged, by either the formal terms of a plan (or an obligation that goes beyond those terms) or legislation, to use any surplus in the plan for the benefit of plan participants, even if the benefit increase has not yet been formally awarded [the resulting increase in the obligation is an actuarial loss and not past service cost, see paragraph 85(b)];
