Changes to the valuation hierarchy for pensions and new disclosure requirements under amended Pension SORP rules need to be reviewed, says Shona Harvie, pensions fund audit partner at Crowe Clark Whitehill
Accounts preparers need to be aware of the changes that have been made to the pension scheme accounting requirements since the Pension SORP Financial Reports of Pension Schemes, Statement of Recommended Practice (2015) was first published.
The changes are a result of revisions to FRS 102, Financial Reporting Standard applicable in the UK & Ireland, which has been amended to include changes to the valuation hierarchy following the Financial Reporting Council’s (FRC) Financial Reporting Exposure Draft 62 (FRED 62).
These changes are effective for years commencing on or after 1 January 2017, with an option to adopt early. In effect, this gives schemes the option to adopt either level 1, 2, 3 or category (a), (b) and (c) valuation hierarchies (see level definitions box above) until 31 December 2017 year ends and onwards.
