Hello, For FRS 17, I have in my notes that the assumptions must be best estimate overall. Whereas for FAS, I have that each individual assumption must be best estimate. For FRS 17, does each individual assumption have to be best estimate or just overall must the assumptions be best estimate? Is the Pensions TAS relevant here in that "no assumption can be adjusted to make up for a short-coming in any unrelated assumption" i.e. regardless of what FRS stipulates, does the Pensions TAS require each individual assumption to be best estimate anyway? Thanks, Barney.
Frs 17 Hi Barney, FRS17 itself requires the basis as a whole to be best estimate, rather than each individual assumption to be best estimate. However, you are right, that in practice there are likely to be pressures that will move individual assumptions towards best estimate, for example: - Pensions TAS (accounting work falls within its scope) - auditors' requirements ... though note that there is likely to be a reasonable range of values for each assumption that could be classed as best estimate. Best wishes Stuart
