Pensions - Articles - PwC comments on the PPF 2017/18 Levy consultation

 "Many companies are still in the process of preparing their accounts under Financial Reporting Standard (FRS) 102 for the first time, but our experience to date is that there can be many potential impacts on net assets.

 "Whilst the Pension Protection Fund's transitional relief addresses FRS 102 adoption for the first time, for International Financial Reporting Standard (IFRS) and FRS 101 reporters there are further fundamental changes coming down the line, with new revenues and lease accounting standards which will need to be considered in the future."

 Julia Dickson, PwC pensions credit advisory partner, said: "The PPF's 2017/18 consultation includes welcome transitional relief on first time FRS 102 adoption for defined benefit scheme employers that are classified by the PPF as "not-for-profit or large and complex".

 "These employers need to understand the quantification of FRS 102 adjustments to their accounts. The PPF's portal will help users to identify any negative impact on their PPF levy for data collected by Experian from the end of April 2016 to the end of March 2017.

 "If these accounting changes cause a drop in levy band, then these employers may submit certifications outlining these adjustments ahead of the 31 March 2017 deadline. Doing so could avoid employers in this category from being potentially unfairly penalised with a weaker levy band."