FRS 17 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

FRS 17 deals with the accounting treatment of defined contribution pension schemes and defined benefit pension schemes.

Accounting for defined contribution schemes is straightforward as the cost is equal to the contributions payable to the scheme in the period.

Defined benefit schemes are more complex: 

• Scheme assets measured at fair value 
• Scheme liabilities measured using projected unit method
• Scheme liabilities discounted at the current rate of return on a high quality corporate bond
• Full actuarial valuations made at intervals not exceeding every three years and updated at each balance sheet date 
• Overall asset or liability presented separately on the face of the balance sheet 
• Extensive disclosures required.

• Read FRC Summary on FRS 17

Last updated 21 June 2015