Charity Finance Directors call for more Guidance on FRS 17

16th September 2002

In their response to the Charity Commissions' consultation on their first annual review of SORP (Statement of Recommended Practice), the Charity Finance Directors' Group (CFDG) have asked the Charity Commission for more guidance for charities impacted by the pensions accounting rule FRS17.

In CFDG's response, published today, they ask the Commission to:
· Develop some worked examples of the impact of FRS 17 on charity accounts (based upon the proposed revision to SORP)
· Provide guidance for Charities on the impact of FRS17 valuations on reserves
· Provide some advice or guidelines on the assumptions made by actuaries for FRS17 valuations
· Provide some guidelines about the early implementation FRS 17 by charities.

CFDG have welcomed the consultation and responded to the technical questions on FRS17 as requested by the Charity Commission. They have stated that they will be very happy to work with the Charity Commission in producing these guidelines and will be writing to offer their support.

CFDG Director, Shirley Scott stated "We very much welcome the proposed amendments to SORP. We have heard many stories about charities pulling out of final salary pension schemes as a result of FRS 17 but there are many other reasons for the decline in these schemes."

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