UK GAAP – Defined Benefit Schemes – More Accounting Changes

A number of further amendments made to the disclosure requirements for companies with defined benefit schemes may be unwelcome news for those who have only just come to terms with the complex disclosure requirements of FRS 17.

A number of changes to the accounting requirements of FRS 17: ‘ Retirement benefits’ will take effect for periods beginning on or after 6 April 2007.

While the main principles of FRS 17 are similar to those of its international equivalent, IAS 19, these further changes will bring the disclosure requirements of the two standards into closer alignment. The ASB is encouraging the preparers of accounts to adopt the new standard ahead of the mandatory application date. The majority of the changes are to disclosure requirements; however, there is also one amendment to the measurement criteria used in determining the defined benefit surplus or deficit. At present, FRS 17 requires that when valuing quoted securities held by a defined benefit pension scheme, this