Pension Accounting Seminar

FEE and the ACCA organised a seminar on Pension Accounting on Wednesday 11 March 2009 from 16.30 to 19.00 hrs in the FEE Offices.

In September 2008, the Association of Chartered Certified Accountants (ACCA) published the results of a research conducted on the application of IAS 19 Employee Benefits by major European companies under the title “Adoption of IAS 19 by Europe’s Premier Listed Companies”. The purpose of the seminar was to discuss the results of this research and some follow-up research and to look into the current plans and future of Pension Accounting together with representatives of the IASB and EFRAG. The current financial crisis has highlighted some of the tensions in the current accounting model – showing the effects of falling and volatile investment values, but also the valuation of the obligations based on corporate bond yields.

Topics covered included the extent of use of the “corridor” approach and the alternative options, as well as the effect of the alternatives on reported equity and liabilities, some evidence of discount rates and examples of disclosures. IASB published a discussion paper setting out a new classification of pension obligations: defined benefit and contribution-based promises with new accounting models for each, including the abolition of the “corridor”. We were also able to discuss the IASB plans on IAS 19 with the help of IASB Member Gilbert Gélard and Andrea Pryde from the IASB staff involved in the project. In addition, given EFRAG’s involvement in the Discussion Paper on Pensions within the Proactive Accounting Activities in Europe initiatives and the role of EFRAG in financial reporting in Europe, Stig Enevoldsen, Chairman of the EFRAG TEG, shared and discussed EFRAG’s views on the future of pension accounting.

The seminar was chaired by Mark Vaessen, Chairman of the FEE Financial Reporting Policy Group.
Related files:

 A – Programme
 B – Speakers’ CV
 C – Presentation of the results of ACCA research on application of IAS 19 by Professor Donna Street (University of Dayton), Jan Fasshauer (University of Giessen)
 D – Presentation of future of IAS 19 by Gilbert Gélard, IASB Member, and Andrea Pryde, IASB Project Manager
 E – Presentation of future of pension accounting by Stig Enevoldsen, Chairman EFRAG TEG and Andrew Lennard, UK Accounting Standards Board, Director of Research
 F – Summary PAAinE Discussion Paper – The Financial Reporting of Pensions
 G – PAAinE Discussion Paper – The Financial Reporting of Pensions
 H – ACCA Research Report 100 – Adoption of IAS 19 by Europe’s Premier Listed Companies
 I – Summary Notes