FRC set to amend FRS 102 defined benefit pension rules

The Financial Reporting Council (FRC) is consulting on changes to FRS 102 to improve the accounting regime for defined benefit pensions, as well as amendments to FRS 101 to take into account IFRS 17 Insurance Contracts.

The FRC exposure draft, FRED 71 Draft amendments to FRS 102 – Multi-employer defined benefit plans, proposes new requirements in FRS 102 for presenting the impact of transition from defined contribution accounting to defined benefit accounting for affected pensions.

When an entity participates in a multi-employer defined benefit plan and sufficient information is not available to use defined benefit accounting, the entity accounts for the plan as if it were a defined contribution plan.