PRAG publishes updated SORP for Pension accounting

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12 Jul, 2018

The Pensions Research Accountants Group (PRAG) has published a revised Pensions SORP (Statement of Recommended Practice) 2018 to bring the current guidance in line with the latest version of FRS 102.

SORPS  are intended to supplement accounting standards and other legal and regulatory requirements to reflect transactions or circumstances that are unique to particular sectors such as pensions. The 2018 SORP, which will replace the current 2015 SORP, sets out revised guidance for financial reporting by pension schemes.

Since the 2015 SORP was published the Financial Reporting Council (FRC) has made a number of amendments to FRS 102  arising from implementation experience and the FRC’s first triennial review . There have also been changes to relevant pension legislation, mainly the withdrawal of detailed investment disclosure requirements. However there have not been any significant industry developments which impact on pension scheme financial reporting and implementation experience of the 2015 SORP has not given rise to any significant issues. Therefore the update to the SORP has been limited to the changes required to be consistent with the current version of FRS 102 and current relevant pension legislation.

Copies of the SORP are available from the PRAG website here. PRAG has also published an accompanying briefing note  setting out some of the more significant amendments.

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