IAS19 Assumptions Report
11 Aug 2020
FTSE 350 companies support £830bn of defined benefit pension liabilities. These same companies have a combined market capitalisation of £1,200bn, so the way these liabilities are measured in company accounts is critical for assessing the financial wellbeing of UK plc.
The materiality of IAS19 pension assumptions is not lost on auditors, who continue to assess and challenge pension assumptions more than ever before. Setting appropriate evidence based IAS19 assumptions is crucial for companies going through their year-end process.
We’ve analysed the key assumptions adopted by the FTSE 350 for their DB pensions disclosures as at 31 December 2019 to understand:
- The implications of COVID-19
- The distribution of discount rates adopted by the FTSE350
- RPI & CPI assumptions
- Salary growth assumptions
- Longevity assumptions
- Allowance for member options
- IAS19 developments
Please click here to download the full report.