Hewitt: IASB pension proposals will hit P&L
Pensions advisers warn that defined benefit pensions accounting proposals will hit proft & loss figures
Reported pension costs will increase under new proposals by the IASB on
accounting standards, claims
Hewitt
Associates.
Proposed changes to IAS 19 could dramatically increase the P&L charges
for UK defined benefit schemes, it claimed.
The return on the scheme’s assets would fail to appear under the current
proposals.
“Sticking with their initial thinking would have a huge negative impact on
the P&L of any company which operates a defined benefit pension scheme. It
also acts as a significant incentive to underfund company pension schemes in the
future,” said Hewitt’s Martin Lowes.
“Hewitt urges the
IASB
to consider this point very carefully.”
An exposure draft on the first changes is expected in Q1 2010, resulting in a
new standard for 2013 to be implemented in 2013.
Further reading:
Guest column: Auto-enrol eligible
employees into a QWPS, or pay the price