UK plc shuns FRS 17.
An overwhelming majority of companies are ill-prepared for changes in pensions accounting
Less than 1% of a survey of 700 companies have adopted the new pensions accounting standard that is set to radically alter the face of company results, according to new research.
Company Reporting, a monthly journal that monitors financial reporting practices in the UK, this month reported its findings following a recent FTSE survey by PricewaterhouseCoopers.
Under the new standard FRS 17, due to take full effect from 2003, companies will have to show pension fund gains and losses as they occur. At present businesses can spread any gains and losses over time.
Renishaw, an electronics equipment manufacturer, with a turnover of #125m, is one of the few companies to have opted for early adoption of the standard.
In its statement of total recognised gains and losses, Renishaw has disclosed an actuarial loss of #1.7m. The news reinforces recent findings by PwC.
A mere 9% of 40 FTSE-250 companies surveyed by PwC last month have looked at the effects the new rule will have on their results. The remaining 91% are unaware of the changes FRS 17 will bring.
Mary Keegan, head of the UK Accounting Standards Board, said: ‘We don’t expect early adoption in terms of measurement in accounts. But I would remind people that at the year-end there is more disclosure demanded that is mandatory. They must be ready by early December.’
UK plc unaware of new pensions rule www.accountancyage.com/Business/1125279.