FRS17 leading to poor asset allocation

In its latest research report: ‘Understanding Companies’ Pension Deficits’ the ABI points out although FRS17 – which requires companies to disclose pension liabilities on balance sheets – was introduced as a way to reduce subjectivity in the valuation of pension assets and liabilities, there is “ample room for improvement”. The 52-page document warns the problem with “balance sheet disclosure in general and FRS17 in particular” is that the information is condensed into a single number on a standardised basis, and they provide a “static” picture of a scheme at a given point in time, but fa...