RegulationAccounting StandardsPunter Southall slams ASB over fair value

Punter Southall slams ASB over fair value

Actuary says the Accounting Standards Board has taken too long to oppose the IASB's push for fair value accounting

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.’

Further reading:

IFRS-light still too heavy

It’s time for investors to get involved

UK pensions deficit rises by £11bn in a day

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

1w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter