UK – The UK’s corporate financial reporting regulator is to review best practice for firms’ disclosure of pensions liabilities.
The Financial Reporting Council said it planned to “review best practice for the disclosure of pensions liabilities by UK companies in the context of the new regulatory regime for UK pension schemes” in 2006/7.
And it said it would undertake a research project into accounting for pensions as well as look at a selection of annual and interim accounts to assess pensions disclosures.
It said: “The introduction in 2005 of IFRS, the amended requirements for narrative reporting, and the new ethical standards for auditors has resulted in those involved in corporate reporting and governance facing a period of significant change and a heavier-than-usual workload.”
Chief executive Paul Boyle said: “The FRC is very conscious that 2005 has been a year of major change for many companies, shareholders and auditors. We have taken this into account in our plans for 2006/07.”
“Our priorities are intended to reinforce confidence in corporate reporting and governance in the UK by improving the information available to market participants.”
The FRC is set to assume responsibility for actuarial standards and regulation in the wake of the Morris Review of the profession.
It will issue a separate report on its actuarial plans on December 22.