Current issues in pensions financial reporting Q3 2024

Download our latest update on pensions accounting for insights on the factors impacting financial disclosures as of 30 September 2024.  We also consider the outlook for schemes with 31 December year ends. 

Covering UK, EU and US accounting standards, this report provides guidance for those involved in preparing and auditing pension disclosures under FRS102, IAS19 and ASC715.

Top insights

• Balance sheet position improvements: Despite increases in IAS19 liabilities, many schemes have seen overall improvements due to positive asset returns.
• Discount rate selection: Analysis on setting appropriate discount rates using AA-rated corporate bond yields and curve-fitting techniques.
• Mortality assumptions: Latest developments in mortality base tables and projections with the new CMI_2023 model.
• Inflation trends: Updates on Retail Price Index (RPI) and Consumer Price Index (CPI) assumptions, including anticipated RPI-CPI alignment in 2030.
• IFRIC14 and surpluses: Guidance on recognising surpluses under IAS19, with special considerations for IFRIC14 liabilities.
• High Court case impact: Summary of the Virgin Media vs. NTL Trustees ruling and its potential implications for DB schemes.

Additional topics

• Financial Reporting Standards (FRC) Revisions: Overview of updates to UK and Ireland reporting standards applicable from 2026.
• IFRS17 impact: Considerations for companies offering guarantees to pension funds under IFRS reporting.
• Industry trends in buyout feasibility: Part one of our FTSE350 pensions report on options for DB schemes in the risk transfer market.