UK - The introduction of FRS17 means large pension benefit improvements are unlikely to ever happen again, Lane Clark & Peacock claims.
It says that under the accounting rules any benefit improvements will have to be charged to a company’s profit and loss account in a single accounting year.
This means large benefit improvements will lead to large costs appearing in company accounts.
The old pensions accounting rule – SSAP24 – allowed companies to spread these costs over a period of around 15 years.
LC&P partner Francis Fernandes said: “FRS17 means we probably won’t see any large benefit improvements again.”
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