Project Director Michelle Crisp gives an outline of progress on this project.

In May, the ASB issued two exposure drafts, a proposed amendment to FRS 17 'Retirement Benefits' and Reporting Statement 'Retirement Benefits - Disclosures'. The comment period for the exposure draft ended on 11 September 2006. Some 45 responses have been received, which the ASB is now considering.

The exposure draft aimed to see whether the disclosures for retirement benefit schemes could be improved in the short-term. This project is distinct from the wider research project the ASB is undertaking on accounting for pensions (see page 5).

Amendment to FRS 17

The exposure draft proposed to amend FRS 17 by replacing the existing disclosure requirements of FRS 17 with those of IAS 19 'Employee Benefits'. The majority of respondents supported this proposal. A number of respondents did, however, raise a concern that some disclosures, required by the existing FRS 17, would no longer be required by the amended FRS 17.

The ASB has reviewed this concern. The ASB considers that if it was to retain some of the disclosures required by the existing FRS 17 in the amended FRS then this will extend disclosure requirements for entities reporting in accordance with UK Financial Reporting Standards in contrast to entities reporting in accordance with International Financial Reporting Standards (IFRS). The ASB considers that this might be viewed as "gold-plating" UK standards and has tentatively decided not to amend the disclosures requirements from those set out in the exposure draft. The ASB will, however, review whether any of the disclosures that will no longer be required by FRS 17 should be recommended in the reporting statement. The ASB has also tentatively decided to progress publication of the proposed amendment to FRS 17 as quickly as possible. In view of comments raised by respondents regarding the effective date, the ASB has decided to review the effective date - giving consideration to any new disclosures that will be required by the amendment.

Proposed reporting statement

The ASB is also reviewing the comments raised in relation to the draft reporting statement. Some respondents have questioned the role of the reporting statement. The ASB has tentatively agreed that the reporting statement should clearly set out that the statement is a recommendation of best practice and can be adopted by any entity that operates a defined benefit scheme, whether applying UK standards or IFRS.

In relation to the draft reporting statement, the ASB has reviewed the responses to the question in the exposure draft's invitation to comment regarding the proposal to disclose the buy-out amount. The ASB notes the strength of concern regarding this proposal and is researching the circumstances where an entity is required by legislation to disclose the buy-out amount.