The FRC have issued Amendments to FRS 102 – Multi-employer defined benefit plans. These narrow-scope amendments respond to a current financial reporting issue regarding where to present the impact of an employer’s transition from defined contribution accounting to defined benefit accounting; it shall be presented in other comprehensive income. The transition is required by FRS 102 when sufficient information about the multi-employer defined benefit plan becomes available for the employer to apply defined benefit accounting for the first time. The amendments do not affect the requirement to recognise the relevant liability (or asset) in relation to the plan.
The amendments are effective for accounting periods beginning on or after 1 January 2020, with early application permitted.
Links to the Amendments and the Impact Assessment and Feedback Statement can be found below:
Amendments to FRS 102
Impact Assessment and Feedback Statement