Financial reporting

Whilst financial reporting is a key area in the management of your pension scheme, accounting disclosures should be straightforward to produce in terms of your time and spend on adviser fees. Where real value can be added is if your actuary is proactive in identifying potential accounting issues and opportunities at an early stage.

Increasingly auditors are taking a much stronger line on their house view of what is appropriate methodology and assumptions. That is why you will want an actuary of sufficient calibre to work with your auditors to ensure that an appropriate final position is reached.

At bac, our team has substantial financial reporting experience. We can offer fixed fee solutions to cover some or all of the following areas, tailoring our package to suit your needs.

Compliance support
  • assumptions setting
  • production of disclosures
  • discussions with auditors
Strategic advice
  • proactive updates on developments in the regulatory framework or investment markets that could impact your financial statements
  • understanding the accounting implications of strategic actions, such as asset de-risking, liability management and revised funding agreements
  • regular accounting updates, so you can track your plan’s position throughout the year

The Finance Director of a FTSE 100 client asked us to carry out an independent review of the assumptions being proposed for the year-end disclosures. Whilst there was some room for movement in the financial assumptions, we identified significant prudence in the demographic assumptions, in particular mortality and proportions married. The removal of this prudence meant the disclosures were a better fit with the accounting requirements and resulted in an improved balance sheet and P&L position. We often see demographic assumptions used for funding purposes carried over to accounting advice without much thought.

25 September 2020

In the news this week, the CMI asks for industry views on how to allow for 2020’s mortality experience, the DWP launches a small pots working group, the autumn Budget is abandoned but the Chancellor announces new measures to help businesses, the Barclays scheme subscribes to a Barclays bond and there is another repeat buy-in.

Endgame planning

Journey plans or glide paths may have been around for a long time but they’re at the heart of the Regulator’s proposed new funding code. In this Pensions Perspective, Leonard Bowman looks at how long-term funding and investment plans are evolving and explains why companies are increasingly taking the lead in designing an endgame strategy for their schemes.

Pensions Arena July 2020

This quarter’s Arena has a summary of our recent Pensions Perspective, “Emerging from lockdown”, which looked at how best to tackle the most common pension issues which companies are currently facing. It also shows all the usual financial and investment analysis for the quarter ending 30 June 2020.

Emerging from lockdown

As we keep hearing, we are living in unprecedented times. However, as we turn our attention to the future, what does the “new normal” mean for defined benefit pension schemes? In this Pensions Perspective, Leonard Bowman considers the most common pension issues that companies are facing and how best to ensure that the company approaches these on the front foot.

Getting buyout ready

Covid-19 has created many challenges for DB schemes but, for those ready to transact in 2020, it may have created even more favourable market conditions for a buyout. The problem is that most schemes are not there yet. In this Briefing we look at what being “deal ready” actually means and what work it will involve.