FRS 17: Difference between revisions

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UK Financial Reporting Standard 17, dealing with retirement benefits.
The former UK Financial Reporting Standard 17, dealing with retirement benefits.


FRS 17 replaced - and widened the scope of - the earlier UK Statement of Standard Accounting Practice SSAP 24.  The most significant impact of FRS 17 is in relation to defined benefit pension schemes.
It introduced the important requirement for the full amounts of pension fund deficits and surpluses to be recognised and disclosed in the sponsoring employer's balance sheet.


FRS 17 requires any deficit in the pension scheme to be recognised in full in the sponsoring employer's balance sheet.


FRS 17 also requires pension liabilities to be measured on a more conservative basis for accounting purposes, compared with the earlier accounting under SSAP 24.  This generally resulted in significantly greater pension liabilities (for accounting purposes) under FRS 17, and a greater incidence of larger pension deficits for accounting purposes.
Effective for periods commencing on or before 31 December 2014.


FRS 17 requires the movement in the pension deficit (or surplus) to be analysed into a number of specified components.


Some of these components are recognised directly in the income statement, impacting reported accounting profits.  These components include the expected returns on the invested pension fund assets.
Employee benefits are covered by Section 28 of FRS 102 for reporting periods starting on or after 1 January 2015.


Other components of the change in the pension deficit (or surplus) are recognised only in the statement of total recognised gains and losses.  So these components do not affect reported accounting profits.  These components include 'actuarial gains and losses' including differences between the actual returns and the expected returns on the invested pension fund assets.


== See also ==
== See also ==
* [[Deficit]]
* [[Deficit]]
* [[Defined benefit pension scheme]]
* [[Defined benefit pension scheme]]
* [[FRS 102]]
* [[IAS 26]]
* [[IAS 26]]
* [[Statement of total recognised gains and losses]]
* [[Statement of total recognised gains and losses]]
* [[Surplus]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:Manage_risks]]

Latest revision as of 11:30, 16 July 2019

The former UK Financial Reporting Standard 17, dealing with retirement benefits.

It introduced the important requirement for the full amounts of pension fund deficits and surpluses to be recognised and disclosed in the sponsoring employer's balance sheet.


Effective for periods commencing on or before 31 December 2014.


Employee benefits are covered by Section 28 of FRS 102 for reporting periods starting on or after 1 January 2015.


See also

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