FRS102

The Financial Reporting Council (FRC) has issued an exposure draft (FRED 55: Draft Amendments to FRS 102 – Pension obligations) to clarify issues relating to accounting for defined benefit pension plans in advance of new UK and Irish GAAP becoming mandatory from 1 January 2015 say Harris & Co accountants Northampton #accountantsnorthampton 

 

The proposed amendments clarify that UK and Irish GAAP does not include all the complexities of IFRS; that no additional liabilities need be recognised in respect of a ‘schedule of contributions’ that has been agreed in order to address a deficit in the plan; and that the effect of restricting the recognition of a surplus in a defined benefit plan, where the surplus is not recoverable is recognised in other comprehensive income, rather than profit or loss (as is consistent with current practice).

 

Comments are invited by 21 November 2014. The FRC expects to issue the final amendments to FRS 102 early in 2015. They will apply to accounting periods beginning on or after 1 January 2015.