The Board for Actuarial Standards (the BAS) has today published a consultation paper setting out proposals for a technical actuarial standard on actuarial information used for accounts and other financial documents. Actuarial information is used in the reporting of pension scheme costs and in determining the earnings of insurance companies.

A key objective of the BAS in drafting the paper is that those with responsibility for preparing accounts and financial statements have confidence in the actuarial information (including information on risk and uncertainty, cash flows and long term effects) they receive.

Following the consultation, the BAS will issue an exposure draft of a principles-based standard that will apply to actuarial work in the scope of the new standard.

Commenting on the publication, Jim Sutcliffe, Chairman of the BAS, said:

“Actuarial information is often used in the preparation of financial documents. It is vital that those preparing these documents understand the actuarial information they are given including the level of uncertainty in any actuarially produced numbers.”

The consultation period ends on 08 January 2010. Copies of the paper can be downloaded from the BAS’s website at: http://www.frc.org.uk/bas/publications/pub2149.html.

1. The Financial Reporting Council (FRC) is the UK’s independent regulator responsible for promoting confidence in corporate reporting and governance. Its functions are exercised principally by its operating bodies (the Accounting Standards Board, the Auditing Practices Board, the Board for Actuarial Standards, the Financial Reporting Review Panel, the Professional Oversight Board and the Accountancy and Actuarial Discipline Board) and by the FRC Board. The Committee on Corporate Governance assists the Board in its work on corporate governance.
2. The Board for Actuarial Standards has a primary objective of promoting competence and transparency of actuarial practice by establishing and improving actuarial technical standards and ensuring that they are coherent, consistent and comprehensive.
3.  All media enquiries should be addressed to Louise Pryor, Director, Board for Actuarial Standards, 020 7492 2328 or email at l.pryor@frc.org.uk.