BusinessCompany NewsBusinesses saved by FRS 17

Businesses saved by FRS 17

The contentious UK rule on pensions accounting has saved many British companies from bankruptcy, claims the world's leading standard setter.

Link: More on FRS17

The statement comes as Sir David Tweedie, chairman of the IASB, told critics of FRS17 that the international standard – coming into effect from 2005 – will be similar, ‘if not better’.

As it stands, the international pensions accounting rule allows for the smoothing of any shortfalls or excesses over a number of years avoiding volatility on the balance sheet.

FRS17, requires companies to adjust valuations annually and show them in the accounts.

But this week Tweedie gave the first indication that the international rule could mirror FRS17. ‘None of the board are smoothers,’ he said.

John Pierce, chief executive of the Quoted Companies Alliance and a staunch critic of the UK rule, said: ‘To adjust annually – on questionable valuation bases – is lacking the common sense that has come to our rescue. There is enough volatility around without artificially creating more.’

Many of Britain’s largest employers have new closed final salary schemes.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

1m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

9m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor