Accounting for UK Pension Schemes


In City Of London

£ 3001-4000


  • Type


  • Methodology


  • Location

    City of london

  • Class hours


  • Duration

    2 Days

  • Start date

    Different dates available

The course gives comprehensively guidance on the accounting regime for UK pension schemes, both in the books of the scheme itself and in the books of the employer. It is primarily intended to benefit preparers of pension scheme and company accounts, but it will also help several other user groups to make informed judgements on the basis of the financial performance and health of the scheme, including trustees and members, senior management of scheme employers, and regulators.

This course does presuppose a working knowledge of the basic principles of accounting and a familiarity with the layout and content of general-purpose financial statements.

UK pension schemes were not directly affected by the introduction of IFRS in 2005. But the principal UK accounting standards underlying the 2007 SORP (Statement Of Recommended Practice) are so closely modelled on the corresponding international standards that IFRS has crept into UK pension accounting through the back door. Pension schemes generally carry substantially all their investments at current market value, so they escape many of the worst complexities of IAS 39, but the valuation process itself has become problematic in the wake of the 2007-08 financial crisis.

A particular problem for schemes which have diversified into emerging markets and unquoted investments such as private equity is the lack of liquidity in these markets and the consequent absence of reliable prices.

Pension schemes are also confronted with a range of subsidiary financial challenges which impinge directly on the accounting process. Prominent among these are the need to minimise non-recovery of UK VAT and of foreign withholding taxes.

This course makes extensive use of real-life comparative case studies and of fully worked examples.

This course can be delivered in-house to a team of people.

For further information about the course, trainer or to request a quote, please contact the center.

Important information


  • Accounting for UK Pension Schemes



Start date

City Of London (London)
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Start date

Different dates availableEnrolment now open

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  • Accounting
  • Finance
  • SORP
  • Multi-employer schemes
  • Net Assets
  • Derivatives
  • Transaction Costs
  • VAT
  • Employee Benefits
  • Foreign Withholding Taxes
  • Defined Benefit Obligations

Teachers and trainers (1)

Former  Practitioner

Former Practitioner

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Course programme

Course Content:

Accounting for pension schemes under the 2007 SORP

  • Overview of principal provisions of the SORP
  • The Fund Account: 1 - Accounting for dealings with members and other involved parties:
    • Contribution income and accruals
    • Multi-employer schemes
    • Recognition of benefits to members and payments to leavers
    • Transfers in and out
  • The Fund Account: 2 - Accounting for returns on investment:
    • Financial assets and liabilities
    • Property and other non-financial assets
    • Underlying income in pooled investment vehicles
    • Derivatives: pricing behaviour and investment rationale
    • Transaction costs
  • The Net Assets Statement: Accounting for assets and liabilities
    • Valuation of listed and unlisted financial instruments: Level 1-3 hierarchy
    • Accounting for foreign currencies
  • Selected special issues:
    • Recovery of VAT
    • Recovery of foreign withholding taxes
  • Disclosures

Accounting for employee benefits under IAS 19 / FRS 17

  • Calculating the Present Value of the Defined Benefit Obligations (DBO)
  • Calculating the Fair Value of scheme assets
  • Current service cost and unwinding of the discount
  • Actuarial gains and losses:
    • Experience gains and losses
    • Changes in assumptions
    • The corridor approach versus full recognition
  • The importance of actuarial assumptions
  • Disclosures

Accounting for UK Pension Schemes

£ 3001-4000