Harrison: accounting for defined benefit pension schemes sub-standard

Many UK listed companies face spiralling defined benefit pension deficits but what is truly disconcerting is the real difficulty in assessing the extent of these pension black holes using publicly available information. Matthew Harrison, managing director of Lincoln Pensions calls for a fresh approach to pensions reporting and disclosures

When even pension professionals are having to interpolate to build an understanding of a company’s pension arrangements based on public information, it is certainly near impossible for the average reader of the accounts.

Mandatory disclosure under pensions accounting standards is relatively limited. However, some companies make voluntary additional disclosures to help readers understand the true risk profile associated with their pension scheme(s).

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