B
Bihac
Member
Hi
This may be beyond the syllabus, but now that firms can't hold unrecognised gains/losses, will they have to have a massive SORIE item for their 2013 accounting period to get rid of it all (and if so, if it was an unrecognised gain, presumably this massively reduces the value of the liabilities and vice versa if it was a loss?), or are there transitional arrangements.
Also, what was the benefit of firms holding unrecognised gains, as if they recognised them, would this not decrease reported pension cost and increase the pension asset? Were they just held as a cushion to enable volatility in accounts to be smoothed (by recognising the gain in years when pension cost would otherwise be high) and to offset future experience losses that might occur?
Thanks
This may be beyond the syllabus, but now that firms can't hold unrecognised gains/losses, will they have to have a massive SORIE item for their 2013 accounting period to get rid of it all (and if so, if it was an unrecognised gain, presumably this massively reduces the value of the liabilities and vice versa if it was a loss?), or are there transitional arrangements.
Also, what was the benefit of firms holding unrecognised gains, as if they recognised them, would this not decrease reported pension cost and increase the pension asset? Were they just held as a cushion to enable volatility in accounts to be smoothed (by recognising the gain in years when pension cost would otherwise be high) and to offset future experience losses that might occur?
Thanks