Chemicals company reports first FRS 17 surplus
Amid all the reports of massive pension deficits under the controversial accounting standard, chemicals company British Vita has reported what may be the first surplus.
A snapshot of the company’s final salary pension scheme at the end of December 2002 revealed that its assets exceeded its liabilities by £300,000.
Recently, a survey by Credit Suisse First Boston found that FRS 17 had left FTSE 100 companies with a staggering £77bn aggregate pension deficit, almost equalling their combined profits.
Amongst the FTSE 100, BAE (628%), Rolls Royce (420%) and Pearson (330%) were some of the companies hardest hit.
The news of a pension surplus at British Vita came as the coming announced results slightly better than expectations. Profits climbed to £109.5m on turnover of £893m.
FRS 17 comes into effect in 2005.