Hi all Have I made a complete hash of this or is there a mistake in the FRS102 example in chapter 22 (pages 28-30)? When switching the deferred liabilities from SFO to FRS basis, the solutions imply that deferred revaluation is switching from 3.0% pa to 2.0% pa and therefore, as the pre-retirement discount rate has also fallen by 1.0% pa, the deferred pre-retirement net rate hasn't changed. However, when setting out the bases on page 29, pension increases in deferment were set to be 2.0% pa on both the SFO and FRS basis. The SFO basis does have inflation = 3.0% pa but unless I've completely missed something I don't think this is what should be used in the deferred basis switch? Assuming I'm right I can follow the rest of the example through with my deferred liabilities - just wanted to make sure I hadn't missed anything/the mistake is picked up for next year! Thanks Bekah
Hi Bekah Will have a more careful look at this when finalising 2018 materials ... but on a quick look I think you are right and easiest will be to be to change the question, to remove reference to inflation and have deferred revaluation be 3%, so that the solutions as they stand are correct. Thanks Stuart
