Proposed DB scheme calculation changes 'damaging'

A consultation paper by the Accounting Standards Board (ASB) proposes requiring pension schemes to report changes in assets and liabilities in the period in whcih they arise, rather than spreading them forward whereby they recognise just part of the liability in that period. It also proposes financial statements should reflect the actual return on assets, rather than the expected value. The ASB says both would reflect the underlying economic reality rather than allowing smoothing mechanisms. Marcus Hurd, senior consultant and actuary at Aon Consulting, says the changes would saddle compan...