FRS 17 and Pension Funding

1
FRS 17 and Pension Funding

• Not adopting in 2002/03 accounts consistent
  with ASB guidance
• Continuing to give full disclosure of effects
• Whilst snapshot short term view is potentially
  distorting we take its message very seriously
• Have already taken steps to address the deficit
• 15m extra paid into UK Fund in 2002/03
• Planning to maintain increased contribution in
  2003/04 and beyond

2
FRS 17
As at 28th February 2001 m 2002 m 2003 m
Gross surplus/(deficit) Related Tax (Debit)/Credit 45 (16) (84) 25 (420) 126
Net surplus/(deficit) 29 (59) (294)
Excludes assets and liabilities relating to
corporate disposals
3
FRS 17
As at 28th February 2002 m 2003 m
Assets Liabilities 1,043 (1,127) 812 (1,232)
Gross deficit Deferred Tax Credit (84) 25 (420) 126
Net deficit (59) (294)
SSAP 24 Prepayment (20) (36)
Impact on equity (79) (330)
4
Pensions Impact on Profit and Loss Account
2001/2 m 2002/3 m
SSAP 24 16 12
FRS 17 11 9
CASH CONTRIBUTIONS 17 27
SSAP 24 gives a greater charge to the Profit and
Loss than FRS 17 The reduction in the charges
year on year is a function of the scheme being
closed to new members as of 1st January 2002