Pensions accounting: present application and future issues

We have the pleasure of inviting you to an event hosted by ACCA on Tuesday 29 April 2008, to discuss the diversity of current practice under the existing international accounting standard IAS19 and the diversity of views of how in principle these costs should be measured.

The aim of the event is to consider the findings of an ACCA research report into the application of IAS19 by Europe’s largest listed companies as well as the discussion paper published by UK Accounting Standards Board (ASB) of the key issues which any new standard on pensions to replace IAS19 will need to address.

This research report arrives at a timely moment given that the International Accounting Standards Board is due to issue a discussion paper of its own proposals for a limited revision of IAS19.

Professor Donna Street, Professor and Mahrt Chair in Accounting, University of Dayton, Ohio;  Professor Martin Glaum, Chair of International Management, Accounting and Auditing, University of Giessen; and Jan Fasshauer, University of Giessen will present some of the findings of the Research Report
• The selection made by these top European companies from among the options permitted by IAS19 and the reasons for that
• The key calculation assumptions made
• Some examples of best practice
• Adequacy of the disclosures provided in relation to pensions
• Implications for the revision of IAS19
followed by a discussion

Andrew Lennard, Director of Research, ASB will then present some of the issues highlighted in their discussion paper which would have to be tackled in developing a future standard to replace IAS19.
• Can there be one standard addressing all types of pension arrangements?
• Should future salary increases be reflected in current pension obligations?
• Should pension plans be consolidated into the group accounts of the employing company?
• Should all changes in pension deficits or surpluses be reported in the employing company’s accounts at the first opportunity? Or can they be spread over service lives?
• At what rate should the pension obligation be discounted to reach its present value?
• How should the cost be reported in the income statement?
• How should the financial statements of pension plans be presented?

The event will be held at ACCA, 29 Lincoln’s Inn Fields, London, WC2A 3EE, commencing at 3.45pm for registration with a drinks reception from 6pm–8pm If you would like to attend this free event then please email extevents@accaglobal.com  as places are limited.