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.’