The updated accounting framework for pensions is designed to bring the guidance into line with the latest version of FRS 102 and to reflect current pension legislation, in particular the withdrawal of detailed investor disclosure requirements.

However, there have not been any significant industry developments which impact on pension scheme financial reporting and implementation experience of the 2015 SORP has not given rise to any significant issues. Therefore the update to the SORP has been limited to the changes required to be consistent with the current version of FRS 102 and current relevant pension legislation. PRAG also received requests for a small number of minor clarifications and these have also been incorporated in the revision.

• FRS 102  The Financial Reporting Standard issued in September 2015 (applicable for accounting periods beginning on or after 1 January 2015);
• Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Fair value hierarchy disclosures issued in March 2016 (applicable for accounting periods beginning on or after 1 January 2017); and
• Amendments to FRS 102 The Financial Reporting Standard Triennial Review 2017 Incremental improvements and clarifications issued in December 2017 (applicable for accounting periods starting on or after 1 January 2019).

Financial statement preparers should pay particular attention to the specific requirements for pension schemes in Section 34. The pension SORP covers FRS 102ʼs specific requirements for pension schemes and the other requirements which are expected to apply to most pension schemes.

Revised Practice Note 15 includes an illustrative statement of trustees’ responsibilities about their key responsibilities in relation to the preparation of financial statements, including going concern considerations.

Further legislative changes include The Pension Schemes Act 2017 and related regulations (published in March 2018) which introduced a new regulatory framework for master trust pension schemes. Although these legislative changes do not have a direct impact on pension scheme financial reporting, in future approved master trusts will be required to file their annual report and accounts with The Pensions Regulator.

For the time being the FRC has confirmed that will be no further significant changes to UK GAAP until at least 2021 onwards, when the UK standard setter will consider the possibility of amending UK GAAP to reflect IFRS rules on revenue recognition, IFRS 15, already effective for listed entities, and IFRS 16 Leases, due to come into effect from 1 January 2019.

‘Since the previous SORP was published in 2015, there has not been significant industry developments that impact on pension scheme financial reporting, and implementation experience of the 2015 SORP has not given rise to any significant issues.