Businesses have welcomed the decision by the Accounting Standards Board (ASB) to defer the introduction of the FRS17 accounting standard.
Both employers and employees will benefit from the postponement, according to David Fairs, pensions partner at KPMG. "Deferral of full adoption of the standard may mean that some companies will reconsider closing their final-salary schemes," he said.
Christine Farnish, chief executive of the National Association of Pension Funds, agreed. "This is encouraging news. FRS17 has begun to damage occupational pensions by forcing companies to publish a snapshot of the funding levels of their schemes," she said.
The ASB has issued an exposure draft delaying the full adoption of FRS17. In the meantime, UK companies will include information prepared in accordance with FRS17 either in the footnotes of their reports, or, where the standard has been voluntarily adopted already, in their main financial statements.
The move is a response to the decision by the International Accounting Standards Board (IASB) to review its equivalent standard, IAS19. The ASB aims to spare British firms the inconvenience of twice changing how they...