HBoS saved from £1.1bn pension deficit
High street banking giant, HBoS, would have faced a £795m pension deficit had the Accounting Standards Board not deferred the mandatory uptake of FRS 17 until 2005.
Link: FRS 17 special report
The disturbing figures are presented in the groups preliminary results, released today, where it admitted the liability would have been as much as £1,136m if it wasn’t for a deferred tax asset.
The statement read: ‘The Group has not yet adopted FRS 17 in respect of pension benefits and under SSAP 24 charged £92m to Profit & Loss in 2002. However, had we adopted FRS 17, the net pension liability across all Group schemes at 31 December 2002 would have been £795m.
‘The deficit on all Group Schemes would have been £1,136m but taking account of a deferred tax asset, the net pension liability for all schemes would have been £795m,’ the report continued.