Final salary schemes 'need more thorough disclosure'

News Article - 23 January 2007
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The Accounting Standards Board is calling for final salary schemes to be better disclosed, revealing any gaps between pension fund assets and what is needed to purchase pension plan annuities from an insurance provider.

A recently issued statement from the ASB highlighted that companies should make the disclosures, reports Accountancy Age.

According to the publication, while the recommendations from the ASB are not enforceable, they are widely adopted by UK companies to sort out their accounts.

The statement was issued after the board reviewed how companies should disclose the funding arrangements of final salary pensions, which have recently been affected by new accounting rules, benefit cuts and closures, the publication states.

When providing disclosures, companies should consider a number of factors, including the relationship of the trustee and the entity of the scheme and how the liabilities are measured, the ASB suggests.

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