Accounting Series 2023

How auditor scrutiny is impacting pensions accounting

Thursday 19 October | 10am

Auditor scrutiny of company pensions obligations has increased significantly over the past 6 years. In this session we explored how audit expectations have changed over the past decade, how this has changed the role of a Corporate Actuary and the challenges that remain, as well as what steps Finance teams can take to achieve a smoother audit process for their DB pensions obligations.

We also looked ahead to current issues and trends to consider for upcoming year ends – with a particular focus on mortality, as recent UK mortality data suggests a sustained trend towards heavier mortality due to the broader impact of Covid-19 filtering through to medium and longer term mortality outcomes. Should consultants and auditors be more responsive to this paradigm shift in mortality expectations, even if this means moving away from long-held industry norms – or otherwise risk balance sheets overstating DB pensions liabilities.

Watch the recording of the session below.

Is your pension surplus real and should it be a deterrent to insurance transactions?

Tuesday 7 November | 10:30am

Improvements in funding positions mean more and more entities are seeing balance sheet surpluses for their UK pension schemes. But does this reflect genuine economic value, or is it just a consequence of accounting standards with no material value expected to be derived in practice?

With endgame options also increasingly within reach and UK pensions insurance transactions set to hit record volumes in 2023 the question of economic value is no longer just a theoretical one. But even in this area the accounting standards require careful navigation.

In this session we explored the tension which can often arise between conceptual accounting standards and outcomes for UK pension schemes in practice, including how to manage stakeholder expectations accordingly.