New disclosure rule boosts pension risks

The implementation of the UK’s new pensions disclosure accounting rule, Financial Reporting Standard 17 (FRS 17), is raising a host of risk management issues for corporate balance sheets. It will also fundamentally alter the way pension fund trustees view the risk-and-return equation. Finance directors and pension fund trustees throughout the world are following these adjustments in the UK carefully. There is pressure within the International Accounting Standards Board to adopt the UK’s FRS