FRRP calls for better pensions disclosure
The Financial Reporting Review Panel says companies can do more to improve pensions accounting
The FRRP has said that companies need to clear up uncertainties surrounding
accounting estimates of pensions and use more accessible explanations of the
state of their pension schemes.
The company reporting watchdog has recently completed a review of the
pensions disclosures of 20 listed companies under IFRS and ten private
businesses under UK GAAP.
The Panel said it was encouraged ‘by the high level of compliance with the
detailed disclosure requirements’ under IFRS and UK GAAP, but added that more
could be done to improve disclosure.
In addition to using more accessible explanations and clearing up
inconsistencies, the FRRP said companies should also work on interpreting what
is meant by principal assumptions, removing immaterial disclosure and presenting
more information on ‘non-standard’ assets held by their pension schemes.
FRRP chairman Bill Knight said the report showed ‘a high level of compliance
with substantial and complex disclosure requirements’.