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FRC Amends FRS 102 Relating to Pension Obligations
By The Financial Reporting Council
Mar 3, 2015

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The Financial Reporting Council (FRC) has today issued Amendments to FRS 102 – Pension obligations to clarify aspects of the accounting for defined benefit pension plans by UK and Irish entities.

The amendments enable sponsoring employers reporting under UK and Irish GAAP to continue with current practice in accounting for defined benefit pension schemes.


  • no additional liability need be recognised for a ‘schedule of contributions’ that has been agreed in order to address a plan deficit when the deficit itself has already been recognised; and
  • the effect of not recognising an irrecoverable surplus in a defined benefit plan is shown in other comprehensive income, rather than profit or loss.

Melanie McLaren, Executive Director of Codes and Standards said:

“The FRC is pleased to be able to clarify for entities applying FRS 102 for the first time that a practical and proportionate reporting basis can be used.”

The amendments have the same effective date as FRS 102, and are applicable to accounting periods beginning on or after 1 January 2015.

Amendments to FRS 102 - Pension obligations

Impact Assessment and Feedback Statement: Amendments to FRS 102 - Pension obligations

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