Chapter 34 - Reporting results

Question 1

What would reports accompanying accounts disclose?

Answer 1

PIPAG

• PERFORMANCE of the company against key objectives
• INVESTMENT strategy and investment performance
• PROGRESS of the company against its long-term and short-term strategic objectives
• ATTITUDE to risk, the key risks it faces, and how it manages and mitigates those risks
• GOVERNANCE arrangements and how the board assures itself of independence

Question 2

List examples of information that may be disclosed to members of a benefit scheme

Answer 2

SCRIBE

• Strategy for investment
• Contribution obligations
• Risks involved
• Insolvency entitlement
• Benefit entitlements
• Expense charges

Question 3

Across different countries, a number of different accounting standards exist for benefit schemes. These have a number of common aims, what are they

Answer 3

CARD

• Consistency in the accounting treatment from year to year
• Avoiding distortions resulting from contributions fluctuations
• Recognizing the realistic costs of accruing benefits
• Disclosure of appropriate information

Question 4

List items that owners of benefit providers may be required to disclose in accounts

Answer 4

DIM CLAIMS

• Director’s benefit cost over the year
• Investment return achieved on the assets over the year
• Membership movements
• Change in the surplus / deficit over the year
• Liabilities accruing over the year (value of)
• Assumptions used
• Increase in the past service liabilities over the year
• Method used
• Surplus / deficit

Question 5

In analysing accounts, attention should be paid to

Answer 5

• any accounting rules, guidance & practice in the country concerned
• whether the accounts have been prepared on a going concern basis
• any changes in accounting practice