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From AACWWiki

Gaining experience

Experience "points" are gained through combat and the training special ability that some leaders have.

In combat, experience "points" are gained when an element inflicts losses greater than it suffers. Leaders gain experience "points" in combat, when elements under their command inflict more losses than they suffer.

In both cases there is a bit of randomness factored in so that there is no hard and fast threshold for gaining experience "points".

In order for a unit or leader to gain an experience level, they must accrue a minimum of five (5) experience points. Again, a bit of randomness comes into play here. Five experience points are the minimum number needed. A unit or leader could accumulate up to twenty (20) experience "points' before actually receiving a new level of experience.

Currently, there is no way for players to know exactly how many experience "points" elements or leaders actually possess prior to gaining a level.

Experience is not affected by losses or replacements. An element can be rebuilt from a single experienced strength point without losing levels of experience.

Effects for units

A unit’s level of experience is indicated by the color of the ribbons on its unit counter. For example, a unit with one level of experience has bronze-colored ribbons, a unit with two levels of experience has silver-colored ribbons, and a unit with three (or more) levels of experience has gold-colored ribbons. Note that all levels of experience above three (3) are indicated by gold-colored ribbons.

Experience is also indicated by star icons located on the top pane of an element’s unit detail panel display. Each star represents a level of experience. For example, certain units begin scenarios with up to five (5) levels of experience. These units have five (5) stars in their unit detail panel displays.

The net effect of experience is to make units more efficient military formations. For each level of experience, units have their abilities increased as follows:

• For each odd level of experience (i.e. 1, 3, 5, etc.), units gain a +1 increase in their initiative, discipline, patrol and evasion values.
• For every even level of experience (i.e. 2, 4, 6, etc.), units gain a +1 increase in their offensive fire, defensive fire, assault, and police values.
• For every level of experience, units gain a 10 point increase in their cohesion value. (For example, a unit with two levels of experience receives 20 extra cohesion points.)

Effects for leaders

Leaders gain tangible benefits from their experience levels just as units do. These benefits are accrued as follows:

• Strategic ratings do not change because of experience.
• A leader’s offensive rating is increased by +1 for each even level of experience (2, 4, 6, etc.)
• A leader’s defensive rating is increased by +1 for each odd level of experience (1, 3, 5, etc.)

References

Orignal version based on posts by ltr213 at the forums