UK accountants welcome SORP changes for pension fund accounting

first_imgIt deals with the preparation of financial reports by pension schemes.Updates to the 2007 guidance became necessary after the UK authorities consolidated UK GAAP into a single accounting standard, FRS 102.FRS 102 is a fundamental reform of financial reporting in the UK.In essence, it is a localised version of the International Financial Reporting Standard for Small- and Medium-sized Entities.Alongside this change, UK legislative and regulatory actions have also made a number of changes to the legal and regulatory environment for pension funds since 2007.In particular, the past seven years have seen the introduction of auto-enrolment, as well as an increasing number of pension schemes entering the Pension Protection Fund.The PRAG issued its draft SORP in April on a three-month comment period.The changes take the form of wide-ranging amendments to the 2007 SORP.Comments on the proposals closed on 16 July.The PRAG invited views from interested parties on a series of changes that affect annuities, investment-risk disclosures, the fair-value hierarchy, financial statement presentation, auto-enrolment, legislative disclosure requirements and concentration of investments.But despite widespread support for the PRAG’s approach in the document, experts who spoke with IPE cited areas for concern.In a recent press notice, the ACCA warned that the PRAG must “more fully” explain the concept of “significant” when it applies to a new requirement to account for matching annuities on the balance sheet.The accountancy body also called for the PRAG to include “an indication” of the “level of materiality applied to disclosures in the example financial statements” in the SORP.And in an interview with IPE, ACCA spokesman Paul Cooper warned that the new SORP would lead to inconsistencies between statutory reporting requirements for disclosures about investments and the requirements of UK GAAP.Urging the DWP to act, Cooper, a corporate reporting manager with the ACCA, said: “It is important changes can be made so the legal requirements are consistent with the revised SORP.”David Hutchings of Hymans Robertson said: “The SORP talks about information to quantify risk. A single number in the accounts could be misleading because that number in isolation might look large and yet say nothing about risk mitigation.“We would like to see a requirement for entities to provide a better explanation of risk – perhaps through the inclusion of an updated statement of investment principles as an appendix to the Report and Accounts to avoid putting big figures into accounts that might be misleading.” Pension fund accountants in the UK have broadly welcomed proposed new guidance from the Pensions Research Accountants Group (PRAG) dealing with the preparation of financial reports by pension funds.In a statement on the draft guidance, global accountancy body the Association of Chartered Certified Accountants (ACCA) said it thought the changes detailed in a draft Statement of Recommended Practice (SORP) would “bring clarity”.But the ACCA warned that interested parties must now lobby the Department for Work & Pensions (DWP) to bring forward legislation to align investment disclosures under UK law with developments in UK generally accepted accounting principles (GAAP).The draft SORP sets out a series of amendments to a 2007 SORP.last_img read more

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FIFA serves notice it will defend itself against TTFA in local court

first_imgPORT OF SPAIN, Trinidad (CMC) — FIFA has signalled it will defend itself against a legal challenge filed by the former executive of the Trinidad and Tobago Football Association (TTFA) by filing an entry of appearance in the High Court here on Tuesday.Football’s world governing body has retained the Port of Spain law firm of Dr Claude Denbow SC. The entry of appearance was filed by instructing attorney Donna Denbow, with Jerome Rajcoomar listed as junior counsel.Ousted TTFA President William Wallace and his team, represented by Dr Emir Crowne and Matthew Gayle, are challenging Fifa’s decision to remove them and appoint a normalisation committee to run the association’s affairs.The Wallace-led executive had initially taken their case to the Switzerland-based Court of Arbitration for Sport (CAS), but withdrew the matter earlier this month saying they were not likely to be get a fair hearing, given some of the decisions CAS had taken in the early stages of the case.With FIFA having filed an appearance to claim, it has 28 days from the May 19 date when it was served with notice of the TTFA’s claim to file a defence.The local football association is seeking the court’s intervention by way of a declaration that Fifa’s removal of the TTFA executive, which was elected to office on November 24, 2019, is null, void and of no legal and/or binding effect; a permanent injunction preventing FIFA from interfering in, and/or seeking to override the fair and transparent democratic processes of the TTFA and/or from attempting removing the duly elected executive from office; and a permanent injunction preventing FIFA and/or its agents and/or assigns and/or servants from interfering in the day-to-day management of the TTFA, including the association’s bank accounts and real property.FIFA said it removed the executive because of mounting and potentially crippling debt, insisting that the local body faced “a very real risk of insolvency and illiquidity” and urgent action was required.The TTFA stands to be suspended as a result of taking Fifa to the local courts, as Article 64 of the Fifa statutes prohibits member associations from taking internal disputes, or disputes affecting Leagues, members of leagues, clubs, members of clubs, players, officials and other association officials to ordinary courts of law.last_img read more

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