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 2 - Detailed FRS17 disclosure listing
This table shows the key disclosures made by the companies who reported FRS17 figures in their 2001 accounts. Figures relate to the worldwide position of each company, not just the UK disclosure. “ND” means figures were not disclosed.
| Company (listed by year-end) |
Market value of assets £m |
FRS17 surplus/ (deficit) £m |
Discount rate % pa |
Expected return on equities % pa |
|---|---|---|---|---|
| March | ||||
| BAA | 1,719 | 548 | 5.80 | 7.00 |
| June | ||||
| Diageo | 5,614 | 979 | 6.30 | 7.70 |
| Hays | 236 | 2 | 6.27 | 7.25 |
| July | ||||
| Smiths Industries | 2,659 | 319 | 6.00 | 8.00 |
| Wolseley | 383 | (61) | 6.00 | 7.00 |
| August | ||||
| Allied Domecq | 2,196 | (48) | 6.10 | 8.00 |
| September | ||||
| Associated British Foods | 1,731 | 365 | 6.00 | 7.25 |
| BOC | 1,751 | 146 | 6.10 | 8.50 |
| Compass | 282 | (98) | 5.50 | 6.50 |
| Daily Mail | 1,131 | 30 | 6.00 | 7.50 |
| Granada Media | 970 | (86) | 6.00 | 7.94 |
| Imperial Tobacco | 2,361 | 344 | 6.00 | 7.50 |
| Six Continents | 1,098 | (9) | 6.10 | 7.50 |
| December | ||||
| Abbey National | 2,286 | (87) | 5.75 | 7.00 |
| Alliance &Leicester | 710 | (59) | 5.90 | 7.00 |
| Amersham | 276 | (104) | 5.75 | 8.00 |
| Anglo American | 1,373 | (41) | 5.90 | 7.10 |
| AstraZeneca | 2,681 | (662) | 5.80 | ND |
| BAE Systems | 9,645 | (704) | 6.00 | 7.50 |
| Barclays | 12,587 | 406 | 5.75 | 7.75 |
| BAT | 3,892 | (582) | 5.80 | 6.90 |
| BG | 199 | (42) | 5.70 | 7.70 |
| BP Amoco | 15,476 | 1,446 | 6.00 | 7.50 |
| Cadbury Schweppes | 1,730 | 122 | 6.00 | 7.00 |
| Capita Group | 153 | (26) | 5.80 | 7.50 |
| Celltech | 56 | (12) | 5.90 | ND |
| Centrica | 2,193 | (333) | 5.80 | 8.00 |
| CGNU | 5,656 | 334 | 5.90 | ND |
| Enterprise Oil | 99 | (12) | 5.80 | ND |
| Friends Provident | 701 | 189 | 6.00 | 8.50 |
| Gallaher Group | 856 | 46 | 5.80 | 7.30 |
| GlaxoSmithKline | 5,564 | (714) | 6.00 | 8.50 |
| Hanson | 1,641 | 209 | 5.80 | 8.40 |
| HBOS | 3,196 | 2 | 6.00 | 7.75 |
| Hilton | 268 | (40) | 6.00 | 8.00 |
| HSBC | 5,979 | (837) | 5.90 | 7.50 |
| ICI | 7,579 | (355) | 6.00 | 7.80 |
| International Power | 75 | 11 | 5.80 | 7.40 |
| Legal &General | 874 | 73 | 5.80 | 8.00 |
| Lloyds TSB | 11,126 | 508 | 6.00 | 8.00 |
| Northern Rock | 137 | (29) | 5.75 | 7.80 |
| Old Mutual | 226 | 24 | 6.00 | 7.50 |
| P&O Princess Cruises | 83 | (17) | 6.25 | ND |
| Pearson | 1,155 | (107) | 6.00 | 7.50 |
| Prudential | 4,362 | 585 | 5.75 | ND |
| Reckitt Benckiser | 704 | 74 | 6.00 | 8.00 |
| Reed International | 2,069 | 197 | 5.50 | 7.20 |
| Rentokil Initial | 608 | 19 | 5.90 | 7.90 |
| Rio Tinto | 2,353 | 276 | 6.00 | 8.50 |
| Rolls Royce | 4,710 | (580) | 6.00 | 8.40 |
| Royal &Sun Alliance | 4,220 | (195) | 5.70 | 7.50 |
| Royal Bank of Scotland | 13,627 | 492 | 6.00 | 8.40 |
| Schroders | 363 | 65 | 5.80 | 8.40 |
| Smith &Nephew | 264 | (30) | 6.00 | 9.00 |
| Standard Chartered | 874 | (32) | 6.00 | ND |
| Unilever | 10,069 | 694 | 6.00 | 9.00 |
| WPP | 323 | (135) | 5.80 | 7.50 |
