Project Director Hans Nailor provides a progress report on this important project.

As reported previously in Inside Track, the ASB is undertaking a major research project into accounting for pensions. In addition, the European Financial Reporting Advisory Group (EFRAG) and European national standard setters have agreed to work more closely together so as to enable Europe as a whole to participate more fully in the development of global standards. These co-ordinated proactive activities are referred to by the acronym 'PAAinE', which stands for 'Proactive Accounting Activities in Europe'. Accounting for pensions was selected as a PAAinE project, which the ASB is leading. The ASB is being assisted in this project by a Pensions Advisory Panel appointed by the Board and a pan-European Working Group selected by EFRAG.

A project update/ discussion summary was published on the website on 30 June, consolidating the ground covered by the Pensions Advisory Panel and the EFRAG Working Group up to then. At subsequent meetings, the groups have debated several more problem areas, including possible principles for measuring postemployment benefit liabilities, measurement of assets held to pay benefits, the effects of regulatory requirements, the reporting of changes in assets and liabilities and accounting for interests in multi-employer plans. In September and October, staff of the ASB have discussed issues arising from the project at meetings of national standard setters and the EFRAG Technical Experts Group.