Is it worth being different on pension costs?

Article Abstract:

The UK Accounting Standards Board (ASB) does not agree with the pensions accounting approach advocated by the International Accounting Standards Committee (IASC). The British believe that the expected return on an appropriate asset portfolio should be used to determine the discount rate used for valuing pension liabilities. In contrast, IAS 19, the new employee benefits accounting standards, prescribes the use of a discount rate based on the return on high quality corporate bonds. The ASB is expected to revise its current pension accounting standard to align it with IAS 19, but will still adopt the appropriate portfolio approach. Considering that its arguments for this approach are flawed, the Board should realize that it will not be beneficial to introduce a standard that is not consistent with IAS 19. This would only create confusion and the added burden of having to harmonize UK accounts with international standards.

Accounting Methods, Pension, health, and welfare funds, Pension Funds & Benefit Plans, Pension Funds, International aspects, Pensions, Accounting Standards Board

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Down Mexico way: the Mexican institute has been taking great strides to become IAS-compliant

Article Abstract:

Mexico's accounting standard-setting body, the Instituto Mexicao de Contadores Publicos, considers the harmonization of Mexican generally accepted accounting principles with the International Accounting Standards as its number one priority. The country is one of the founding members of the International Accounting Standards Committee, established in 1973, and has always strived to align national and international accounting practices. Among the areas where it has already achieved harmonization are the disclosure of accounting policies, financial statement consolidation, research and development, current assets and liabilities, fixed tangible assets, accounting estimates, and property, plant and equipment depreciation.

Mexico

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Historical cost still makes sense for agricultural assets

Article Abstract:

The International Accounting Standards Committee's draft statement of principles on accounting for agriculture proposes the fair value method for biological assets and certain agricultural produce and agricultural land. The Institute of Chartered Accountants in England and Wales (ICAEW) does not support this approach because it believes that fair value accounting is appropriate only for long-term agricultural activities, such as forestry and plantations. It believes that fair values will not effectively account for livestock and other agricultural products that mature within just three years. The ICAEW argues that historical cost accounting is a better approach because it can generate more accurate figures.

Agriculture, Crop Production, Farms, Management, Agricultural industry, Institute of Chartered Accountants in England and Wales, Farm produce, Agricultural products

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