We are pleased to publish KPMG’s 2014 Pensions Accounting Survey which looks at trends in best estimate assumptions. It’s based on the experience of 295 KPMG clients with UK defined benefit obligations reporting under International Financial Reporting Standards (IFRS) or UK/US generally accepted accounting principles (GAAP) at 31 December 2013.
Our analysis reveals how gross pension liabilities are at their historic high, but due to stellar asset performance, deficits have remained stable. In each key area we have looked at, our analysis shows that the market is more closely packed around the median than last year.
Our survey provides a comprehensive view of best estimate market practice, for use in areas beyond accounting. These include scheme funding, mergers and acquisitions (M&A) plus consideration of other pension strategies.
This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.