TaxAssist Accountants
0800 0523 5550800 0523 555

Accounting rules for pensions branded "meaningless"

Date: 1st February 2008

Inadequate representation of pension deficits is creating confusion, a new report suggests.

Funded by the ICAEW Charitable Trusts, the Pensions Institute (Cass Business School) study concluded pension rules are misleading users.

A key issue is the use of a single number to represent pension deficit, which does not take account of variables such as life expectancy.

Director of the Pensions Institute Professor David Blake told AccountingWEB: "Forecasts are only helpful if we understand the uncertainty around them.

"A single number cannot convey useful information about the distribution of future outcomes."

The website noted that, at the moment, companies account for their defined benefit pension plans by predicting the flow of future payments required.

These future payments are discounted back to their current value and netted off against pension fund assets.

Cass Business School is located close to the City of London and offers a range of courses from undergraduate to PhD.

ADNFCR-1448-ID-18450913-ADNFCR


Related Articles



0800 0523 555 TaxAssist Accountants Locations Map
TaxAssist Facebook TaxAssist Twitter TaxAssist Blog RSS

Newsletter for Small Business

Join our newsletter and receive tax news every month suitable for small businesses.

Testimonials

View all

Over the past 10 years we believed that if we wanted outstanding service we should use traditional large accountancy firms. Oh how wrong we had been! We had been charged high fees without any real value being added to the business.
DAVE THOMAS
Bluegrass Consultancy Ltd

© 2012 TaxAssist Accountants. All Rights Reserved. TaxAssist Accountants Buy Local Campaign TaxAssist Accountants Supports Round Table Childrens Wish TaxAssist Accountants - Interactive Media Awards 2010 Best In Class Winner