UITF Abstract 48 Replacement of the RPI and CPI for Retirement Benefits
Issued 17 December 2010. Effective immediately.
UITF Abstract 48 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015.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
Abstract 48 provides guidance on the accounting implications of the government decision that the Consumer Prices Index (CPI) should replace the Retail Prices Index (RPI) as the inflation measure to use in determining the minimum pension increases which must be applied to the statutory index-linked features of retirement benefits.
The abstract considers:
- How to establish whether there is a reduction in scheme liabilities.
- How to present a reduction in scheme liabilities.
- When to recognise the effect of a reduction in scheme liabilities.
Last updated 21 June 2015
