FRS17 still low on company agendas
Less than 1% of 700 FTSE companies have adopted a 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 FRS17, due to take 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 Pounds 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 disclosed an actuarial loss of Pounds 1.7m.
A mere 9% of 40 FTSE-250 companies surveyed by PricewaterhouseCoopers last month have looked at the effects the rule will have on their results. The remaining 91% are unaware of the changes FRS17 will bring.
Links
UK plc unaware of new pensions rule