Current issues in pensions financial reporting Q1 2024

Our latest briefing is for those involved in preparing and auditing pension disclosures under Accounting Standards FRS102 (UK non-listed), IAS19 (EU listed) and ASC715 (US listed) as at 31 March 2024. 

We’ll explore topical issues, alongside considerations for company directors when setting assumptions and determining whether the assumptions are appropriate for auditors.  

Top insights

• IAS19 liabilities hold steady - Since 31 March 2024, most scheme have seen the value of their IAS19 liabilites stay broadly consistent, with corporate bond yields remaining at similar levels to last year. 
• Impacts on balance sheet are mixed - The outcome of the net balance sheet position can vary for schemes, and will likely depend on the balance between liability hedging assets and growth seeking assets in the scheme. 
• Surpluses, IFRIC14 and asset ceilings -Where there is an accounting surplus companies will need to consider the extent that this can be recognised on the balance sheet or whether an asset ceiling needs to be applied and, for those accounting under IAS19, whether IFRIC14 requires any additional liabilities to be recognised. We’ll also investigate topics such as discount rates, developments in inflation, the pandemic’s impact on pension scheme demographics and mortality projections. 

We'll also explore topics such as

• Discount rates;
• developments in inflation;
• the pandemic's impact on pension scheme demographics; and
• mortality projections.