International pensions rule to be reviewed
The International Accounting Standards Board is to review its pensions accounting standard as UK plc battles with radical changes to the UK's new pension rule.
Proposed amendments to IAS 19, which is less rigid than the UK’s FRS 17, will look at the rule’s option to defer gains and losses in the pension fund and the limit on the amount that can be recognised as an asset.
Any changes to IAS 19 will have a significant impact on UK plc, which together with other European-listed companies must comply with IASs by 2005.
Sir David Tweedie, chairman of the IASB, said: ‘The IASB believes that it is important to be responsive to legitimate concerns with standards raised by parties involved in financial reporting. Consequently, we have moved quickly to address a specific problem that practitioners have identified in an existing standard.’