INTM523420 - Thin capitalisation: practical guidance: accountancy issues: FRS 17: presentation of FRS17 in the accounts - disclosures

Disclosure of defined benefit schemes in the accounts

There are extensive disclosures required under FRS 17. These include:

  • an analysis of amounts included
  • within operating profit
  • within other finance costs, and
  • within the statement of total recognised gains and losses
  • an analysis of the amounts on the balance sheet (or statement of financial position under IFRS) including - movement in the surplus or deficit in the scheme over the period and a reconciliation of the surplus/deficit to the balance sheet asset/liability. This note is useful in that it discloses the cash contributions made to the scheme during the period (often under the heading of “Contributions”).

The disclosures are normally given in a lengthy note towards the back of the accounts. If full disclosures are not given at an individual entity level, they should be provided at a higher group level (for instance in the ‘glossy’ consolidated accounts).

Similar levels of disclosure are required by entities reporting under one of IAS 19, IAS 19 (revised), FRS 101 or FRS 102.