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Barnett Waddingham comments on the ASB UK Accounting final exposure draft
Commenting on the final exposure draft on the future of UK Accounting issued by the Accounting Standard Board yesterday, which states companies will no longer be able to set the expected return on a scheme’s assets according to the assets actually held by the plan,
Nick Griggs, partner at Barnett Waddingham, said:
“It makes a lot of sense for there to be consistency between UK and international pensions accounting standards and the ability to set the expected return on a scheme’s assets according to the assets actually held by the plan would have represented a significant difference between them.
"This change also removes one of the particularly subjective assumptions with the accounting standard. In most cases this will result in a higher profit & loss charge in relation to the pension scheme. Therefore, it is not likely to be a popular change with finance directors at companies with a Defined Benefit Scheme."
For further information please contact
Steph Gold or
Nick Griggs.