Financial Reporting Standard 102 (FRS 102) has now replaced FRS 17 as the main financial reporting standard in the UK and Ireland. It is important that you understand the changes, how they affect you and the options available to you to manage any impact accordingly. Spence has put together a handy summary to help you do that – just click the option that applies to you and get in touch if you would like any further assistance.
Posts by Angela
With the introduction of new UK Generally Accepted Accounting Practice (UK GAAP), and subsequently, the introduction of Financial Reporting Standard 102 (which replaces Financial Reporting Standard 17 as the financial reporting standard in the UK and Ireland) we ask employers to consider the impact this may have on their P&L and balance sheet, and note some actions employers can take to limit this impact.
The most significant change under new UK GAAP for defined benefit pension schemes is in relation to non-segregated multi-employer arrangements where employers are unable to identify their share of the assets and liabilities in the Scheme. Under old UK GAAP (and hence FRS 17) there was a exemption that allowed employers in this position to account for their pension costs on a defined contribution basis, by recording the contributions paid to the scheme in the profit and loss account. No account had to be taken of any pension deficit that may have existed at that date. Read more »
Spence & Partners latest blog for Pension Funds Online –
Chancellor George Osbourne announced his Summer Budget on 8 July with a number of key developments for the pensions industry.
The main one being that the annual allowance will be reduced from April 2016 for individuals with income, including their own and their employer’s pension contributions of more than GBP 150,000.
The Chancellor also launched a consultation requesting industry views on reforming pensions tax relief. Read more »
Spence & Partners latest blog for Pensions Funds Online –
The Pensions Regulator implemented a revised version of Code of Practice 3 for funding defined benefit pension schemes.
The Code has been updated to take account of the Regulators new statutory objective to minimise impact on the sustainable growth of the employer, and recognises that a strong, ongoing employer alongside an appropriate funding plan is the best support for a scheme.
The revised Code is less prescriptive and more principles based and as such leaves room for interpretation. There is no longer scope for a ‘one size fits all’ approach where schemes will avoid the scrutiny of the Regulator provided they do not hit certain ‘triggers’.
In this new landscape, funding a scheme can be thought of in a similar way to buying a suit: Read more »
The Pensions Regulator (“the Regulator”) has recently implemented a revised version of Code of Practice 3 (“the Code”) for funding defined benefit pension schemes.
The Code has been updated to take account of the Regulators new statutory objective to minimise impact on the sustainable growth of the employer. The code recognises that a strong, ongoing employer alongside an appropriate funding plan is the best support for a well-governed scheme.
The revised Code is less prescriptive and more principles based and as such leaves scope for interpretation. There is no longer a ‘one size fits all’ approach where schemes will avoid the scrutiny of the Regulator provided they do not hit certain ‘triggers’. Each funding plan will be and should be unique to that scheme, and the circumstances of the sponsoring employer. Read more »
I recently presented at a ‘Future Influencer’ breakfast seminar hosted by Spence & Partners, on Financial Reporting Standard 102 (FRS102) and its effect on accounting for pension costs.
Under the current regime, listed Companies have to account for their pension liabilities under International Accounting Standard 19 (IAS19). Unlisted Companies can choose to account for their pension costs under either Financial Reporting Standard 17 (FRS17) or IAS19.
FRS102 introduces amendments to both FRS17 and IAS19 which will have an effect on the profit disclosed in Company accounts, and the final balance sheet position.
The main changes are as follows:
- There is no longer an exemption for Companies participating in multi-employer Schemes with non-segregated assets Read more »