FRS17
... Firstly, the introduction of SSAP24 and secondly, its phased replacement by FRS17. ... (Robins 2001) FRS17 addresses these issues with the following key changes; 1. ... Another factor in the roll out of FRS17 has been the development of IAS19. This is broadly similar to FRS17, the major difference being in the treatment of actuarial gains and losses arising in respect of Defined Benefit Schemes. ... The issue of “immediate recognition” is not yet resolved, and whilst the IASB is by no means dismissing the idea of coming into line with FRS17, they believe it is not feasible to use this approach until they have resolved “substantial issues about performance reporting.”(Anon Consulting, 2002) c) Critically assess the implications of FRS17 for companies operating funded, defined benefit pension schemes. ... “But,” states Malcolm Wheatley, in his article “Sea Change in Pensions”, Financial Director (31st May 2002), with the arrival of FRS17, and surpluses a thing of the past, that is no longer an option. ... ” Turning to some of the legal implications, in a press release dated 2 May 2002, Ian Gordon of law firm McGrigor Donald warns, “FRS17 could lead to Lawsuits against Directors for Unlawful Distributions”. ... In the same release Gordon returns us loosely to the volatility theme, making the point that negative pension reserves (reported as a result of FRS17) could disrupt corporate transactions or financing arrangements. ... Ros Altmann (2002), advisor to the pensions industry, makes the point that “if equity markets were to recover sharply, the funding position would improve and FRS17 would be much less of a problem. ... The alternative as reported by Peter Thompson (9 May 2002), in his speech to the NAPF, will be that FRS17, “whether correctly or otherwise”, will continue “to be publicly blamed for the closure of some defined benefit schemes. ... ASB, Standards in Issue – FRS17, (November 2000) 3. ... Robins, P, (1 February 2001), FRS17 – Retirement Benefits, Accounting and Business Magazine, ACCA. ... Penketh, A,(1 July 2002), FRS17: What it is and how it came about, Technical PMI News (2002) 14.