Current Issues in Pensions Financial Reporting - 30 September 2019

Published by Martin Hooper on

Our latest Current Issues in Pensions Financial Reporting newsletter is for those who will be involved in preparing and auditing pension disclosure under Accounting Standards FRS102 (UK non-listed), IAS19 (EU listed) and ASC715 (US listed) as at 30 September 2019.

We look at the current topical issues as well as the considerations for company directors when setting assumptions, and for auditors in determining whether the assumptions are appropriate. This briefing sets out some of the technical issues relevant to those involved in the preparation and the audit of pension disclosures.

Key findings include:

  1. IAS19 discount rates have fallen by more than 1% pa since the start of 2019, which could lead to an increase in liabilities of 20% for a typical pension scheme
  2. Pension schemes that have not hedged the majority of their interest rate risk are likely to see a significant increase in IAS19 deficits at their next reporting date
  3. The government’s proposed changes to the RPI index mean that companies may need to review the method for setting RPI and CPI assumptions.
     

Download the briefing note below to find out more.