Introduction
1. Summary
2. Introduction and main findings
3. Pension accounting in turmoil
4. The fate of the defined benefit scheme
5. Detailed analysis of SSAP24 disclosures
5.1 Disclosures
5.2 Actuarial assumptions
6. Detailed analysis of FRS17 disclosures
6.1 FRS17 results and key assumptions
6.2 FRS17 and balance sheet risk
Appendix 1 - Detailed SSAP24 disclosure listing
Appendix 2 - Detailed FRS17 disclosure listing
Appendix 3 - FRS17 risk measures
Accounting for Pensions Survey 2002
Appendix 1 - Detailed SSAP24 disclosure listing
This table shows the disclosures made by the companies surveyed and the corresponding score as explained in Section 5.
Where sufficient information was given to show the actuarial value used for assets, for example, if an unsmoothed market value is used, this is counted as being the same as disclosing the dividend growth rate on the traditional discounted income model.
Where the assumptions appear to represent a market value method but have not been stated as such the company has been awarded 3 out of 5 points for the asset valuation, shown as YES* in the Asset valuation column below.
| Company | Asset valuation | Pension increases | Spreading method | Split of cost | Total |
|---|---|---|---|---|---|
| 3i | YES* | YES | YES | YES | 18 |
| Abbey National | YES* | YES | YES | YES | 18 |
| Alliance & Leicester | YES | YES | YES | YES | 20 |
| Allied Domecq | YES | YES | NO | NO | 16 |
| Amersham | YES | YES | YES | YES | 20 |
| Anglo American | YES* | YES | NO | NO | 14 |
| Associated British Foods | YES | YES | NO | NO | 16 |
| AstraZeneca | YES | YES | YES | NO | 18 |
| BAA | YES | YES | YES | YES | 20 |
| BAE Systems | YES | YES | YES | NO | 18 |
| Barclays | YES | YES | YES | YES | 20 |
| BAT | YES | YES | YES | NO | 18 |
| BG | YES | YES | NO | YES | 18 |
| BOC | YES | YES | YES | YES | 20 |
| Boots | YES | YES | NO | NO | 16 |
| BP Amoco | YES | YES | YES | YES | 20 |
| British Airways | YES | YES | NO | NO | 16 |
| British Land Company | NO | YES | NO | NO | 11 |
| BT | YES | YES | YES | NO | 18 |
| Cable & Wireless | YES | YES | YES | YES | 20 |
| Cadbury Schweppes | YES | YES | YES | NO | 18 |
| Capita Group | NO | YES | YES | NO | 13 |
| Celltech | YES | YES | YES | YES | 20 |
| Centrica | YES | YES | YES | YES | 20 |
| CGNU | YES | YES | NO | NO | 16 |
| Compass | NO | YES | NO | NO | 11 |
| Daily Mail | YES | YES | YES | NO | 18 |
| Diageo | YES | YES | YES | NO | 18 |
| Dixons | YES | YES | YES | YES | 20 |
| Electrocomponents | YES | YES | NO | NO | 16 |
| EMI | YES | YES | NO | NO | 16 |
| Enterprise Oil | YES | YES | NO | YES | 18 |
| Friends Provident | YES | YES | YES | NO | 18 |
| Gallaher Group | YES | YES | YES | YES | 20 |
| GlaxoSmithKline | YES | YES | YES | YES | 20 |
| Granada Media | YES | YES | NO | NO | 16 |
| GUS | YES | YES | NO | NO | 16 |
| Hanson | YES | YES | YES | NO | 18 |
| Hays | YES | YES | YES | YES | 20 |
| HBOS | YES* | YES | YES | YES | 18 |
| Hilton | YES | YES | YES | YES | 20 |
| HSBC | YES | YES | NO | NO | 16 |
| ICI | YES* | NO | YES | YES | 17 |
| Imperial Tobacco | YES | YES | NO | NO | 16 |
| Innogy Holdings | YES | YES | NO | NO | 16 |
| International Power | NO | YES | NO | NO | 11 |
| Invensys | YES | YES | YES | YES | 20 |
| Kingfisher | YES | YES | NO | NO | 16 |
| Land Securities | YES | NO | NO | NO | 15 |
| Legal & General | YES | YES | YES | YES | 20 |
| Lloyds TSB | YES | YES | YES | NO | 18 |
| Man Group | NO | YES | NO | NO | 11 |
| Marks & Spencer | YES | YES | NO | YES | 18 |
| Morrison (Wm) Supermarkets | YES | NO | NO | NO | 15 |
| National Grid | YES | YES | NO | YES | 18 |
| Next | YES | YES | YES | YES | 20 |
| Northern Rock | YES | YES | NO | NO | 16 |
| P&O Princess Cruises | YES | YES | NO | NO | 16 |
| Pearson | YES | YES | NO | YES | 18 |
| Prudential | YES | YES | YES | YES | 20 |
| Reckitt Benckiser | YES | YES | YES | YES | 20 |
| Reed International | YES* | YES | YES | YES | 18 |
| Rentokil Initial | YES | YES | NO | NO | 16 |
| Rio Tinto | YES | YES | YES | NO | 18 |
| Rolls Royce | YES | YES | YES | NO | 18 |
| Royal & Sun Alliance | YES | YES | YES | YES | 20 |
| Royal Bank of Scotland | YES | YES | NO | YES | 18 |
| Safeway | YES | YES | YES | YES | 20 |
| Sainsbury | YES | YES | NO | YES | 18 |
| Schroders | YES | YES | YES | YES | 20 |
| Scottish & Newcastle | YES | NO | NO | NO | 15 |
| Scottish & Southern Energy | YES | YES | NO | NO | 16 |
| Scottish Power | YES | YES | YES | YES | 20 |
| Severn Trent | YES | YES | YES | NO | 18 |
| Six Continents | YES* | YES | NO | YES | 16 |
| Smith & Nephew | NO | YES | YES | NO | 13 |
| Smiths Industries | YES | YES | NO | NO | 16 |
| Standard Chartered | YES | YES | YES | YES | 20 |
| Tesco | YES | YES | NO | NO | 16 |
| Unilever | YES | YES | YES | YES | 20 |
| United Utilities | YES | YES | NO | NO | 16 |
| Vodafone | YES | NO | NO | NO | 15 |
| Wolseley | YES | YES | YES | YES | 20 |
The 83 companies listed above were analysed in depth. Those not analysed were: Amvescap, ARM Holdings, BSkyB, Canary Wharf Group, Logica, Reuters, Sage and Shire Pharmaceuticals (no evidence of significant defined benefit provision); Shell (do not report under UK generally accepted accounting principles), Billiton, Brambles Industries Ltd, Old Mutual and South African Breweries (wholly overseas); WPP (fully adopted FRS17 in 2001); Lattice, mm02 and Powergen (no annual report produced in 2001).




