Launching an exposure draft for retirement benefits, ASB chairman Sir David Tweedie, told Accountancy Age that ASB wants to force companies to move away from the use of actuarial values for assets in a pension scheme to a market value based approach.The draft standard, FRED 20, falls in line with the increasing use of market values by the actuarial profession in the UK. It also marks a move towards the practice used internationally in countries such as the US.'SSAP 24 has lost all credibility,' said Tweedie. 'We are replacing it with an approach that is consistent with international standards in the measurement of the pension scheme surplus or deficit.'The new standard will be published as soon as the end of next summer and will stamp out accountancy abuse.'SSAP 24 has also come under fire for failing to achieve its objective of forcing companies to come clean on their pension funds.The ASB has reassured companies the move towards market values will not bring volatility into the measurement of the surplus and deficit in the pension scheme.'We have developed an alternative approach to cope with volatility. The effects of the fluctuations in market values will not be part of the operating results of the business and are treated in the same way as revaluations of fixed assets, ie are recognised in the second performance statement, added Tweedie.FRED 20 will replace SSAP 24 'accounting for pension costs' and UITF Abstract 6 'accounting for post retirement benefits other than pensions.'
Freshly launched 11nm Qualcomm silicon will come with Adreno 612 GPU
Are pinning down the exact rate of expansion of the Hubble constant
RISC OS 5 to form the basis of RISC OS Open after Castle Technology sells to RISC OS Developments
A smartphone maker fiddling its benchmarking scores? That's unusual, isn't it?