Accounting for UK Pension Schemes

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.