The Accounting Council, replacement body for the Accounting Standards Board (ASB), has told the Financial Reporting Council that it plans to issue a limited scope Exposure Draft on defined benefit multi-employer pension plans (excludes group pension plans)'. If approved by the FRC, the draft will be issued as part of its ongoing review of the plans for the new FRS 100-102 accounting standards to replace UK GAAP, due for publication by year end 2012.

It said the amendment would be consistent with IAS 19, Employee Benefits, and 'would require a liability to be recognised where there is an agreement to fund a deficit relating to past service, even though the scheme is otherwise accounted for as a defined contribution scheme'.

The Accounting Council also made a number of other recommendations to the FRC such as small companies choosing to apply FRS 102 instead of the FRSSE should not be exempt from preparing a cashflow statement.

Full details on the issues up for review are available on the Accounting Council updates review page at theFRC