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Title: FRS 17 early adoption and market evaluation of pension disclosures in the UK
Author: Doost-Hosseini, Kazem
Awarding Body: University of Manchester
Current Institution: University of Manchester
Date of Award: 2008
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Full adoption of FRS 17, the accounting standard for retirement benefits, was optional for UK companies from June 22, 2001 until January 1, 2005. Although the Accounting Standard Board (ASB) encouraged early adoption, the continued use of the prior standard, SSAP 24, has been widespread. If the use of SSAP 24 is continued, equivalent information on a FRS 17 basis has to be provided in footnote disclosures (with some exceptions for financial year 2001). Early switchers to FRS 17 do not have to provide equivalent SSAP 24 information. It has been argued that, because of the changes in valuing both the asset and liability recognition sides of the pension plan, adoption of FRS 17 weakens company balance sheets, at least during the period considered. The impact on the profit and loss account is less clear. The study first analysed non-switching companies and, :fi:om hand-collected data, assessed the potential impact of switching from SSAP 24 to FRS 17. The result shows that, in general, the balance sheet recognition under FRS 17 of the pension plan would have been lower, relative to SSAP 24. The total pension expense recognised under FRS lower for these companies, implying higher profit figures, than it is under SSAP 24.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available