PracticeAuditPension plans will add £10bn to pension costs: PwC

Pension plans will add £10bn to pension costs: PwC

New rules will “radically change”accounting for pensions

New changes to pension accounting will lead to a £10bn rise in pension costs,
Big Four firm PricewaterhouseCoopers has claimed.

The firm said expected proposals to IAS 19, The international accounting rule
for pensions, would “radically change” how companies account for their pensions.

“[It] would hit the profits of companies with UK or overseas defined benefits
pension schemes – A company with a £2bn pension scheme would typically see
reported pension costs rise by about £25m a year,” said Brian Peters, partner,
PricewaterhouseCoopers.

The International Accounting Standards Board is drafting its pension
proposals at the moment and is expected to release its proposals in coming
weeks.

Further reading:
Pensions
tax shift will see FDs feel the pinch

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