Pension Costs in Company Accounts

Overview

This course examines in detail the accounting requirements for pension costs under IAS 19, FRS 102, and FRS 105. The primary focus is on the accounting treatment and disclosure requirements for defined benefit plans, although defined contributions plans will also be considered. The course uses practical examples and extracts from published financial statements to illustrate how the standards should be applied.

Who is this for?

This course is primarily designed for those involved in preparing or auditing pension cost information for inclusion in published financial statements. It will also be of use to anyone requiring a deeper understanding of the impacts of pensions accounting on the financial statements of companies.

What will you learn?

On completion of this course you will be able to:

• Prepare the required information in respect of pension costs for inclusion in company accounts in compliance with IFRS and UK GAAP
• Identify the information required for the preparation of that information
• Identify the differences between the requirements of the different regimes

The course will cover:

• Types of pension plan: defined contributions plans vs defined benefits
• Overview of the accounting requirements
• The net defined benefit liability/asset
  • Valuation of plan assets
  • Establishing the defined benefit liability
  • The asset ceiling
• The pension cost
  • Elements of the cost
  • Amounts recognised in profit or loss
  • Amounts recognised in Other Comprehensive Income
  • Introductions and changes
  • Settlements and curtailments
• Further issues
  • Funded and unfunded plans
  • Multi-employer and state plans
  • Group plans
• Deferred tax implications of pensions