UK - Financial statement rules may be amended to clarify pension scheme liabilities.
The Accounting Standards Board has asked the Pensions Research Accountants Group to look at whether scheme actuarial liabilities should be included in financial statements.
PRAG aims to find out whether excluding actuarial liabilities is consistent with FRS12, which deals with current liabilities and contingent liabilities, and whether it is consistent with FRS17.
Current practice – included in the ASB statement of recommended practice’s Financial Reports of Pension Scheme for which PRAG is responsible – makes no reference to the issue, even though a revised version was introduced at the end of last month.
PRAG’s statement of recommended practice revision working party secretary Jo Rodgers said: “Pension schemes – and in particular their funding positions – are increasingly in the spotlight.
“The challenge presented by this consultation paper is to see if there are ways of giving the readers of pension scheme financial statements better information on the liabilities of the scheme, without sacrificing the clarity and simplicity of the current format of pension scheme financial statements.” PRAG’s consultation will close on February 28 – the results of the exercise will be published in the second quarter of this year on the website www.prag.org.uk.
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