Punter Southall slams ASB over fair value

David Cule, principal at actuarial firm
Punter Southall ,
has criticised the UK Accounting Standards Board (ASB) for not resisiting the
IASB’s attempts to introduce fair value accounting earlier.

In a letter to the FT
Cule said the
ASB had made a radical
change to pensions by introducing the fair value premise in the pension scheme
standard FRS17, a move which had compromised the long term quality of pensions.

‘The consequent behavioural changes from making these liabilities debt-like
and volatile – without the same degree of volatility being applied to all other
accounting entries on the corporate balance sheet – has ensured that the
provision of high-quality pensions has been substantially reduced,’ said Cule.
‘What goes around comes around.’

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