UITF Abstract 32 Employee Benefit Trusts
Issued December 2001. Effective accounting periods ending on or after 23 December 2001.
UITF Abstract 32 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015.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:
Synopsis
When an entity transfers funds to an intermediary there should be a rebuttable presumption that the sponsoring entity has exchanged one asset for another and that the payment itself does not represent an immediate expense.
Where a payment to an intermediary is an exchange by the sponsoring entity of one asset for another, any assets that the intermediary acquires in a subsequent exchange transaction will also be under the de facto control of the sponsoring entity. The intermediary’s assets (and liabilities if any) will be recognised as assets/liabilities of the sponsoring entity.
When an entity recognises assets/liabilities held by an intermediary on its balance sheet it should disclose sufficient information in the notes to enable users to understand any restrictions relating to those assets/liabilities
Last updated 21 June 2015
