On the go: Consideration of going concern in the preparation of pension scheme financial statements requires greater focus from trustees due to the coronavirus crisis, accountancy bodies have warned.
The Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accounts of Scotland and the Pensions Research Accountants Group published new joint guidance on pension scheme reports and financial statements on Tuesday, which covers a wide range of topics.
The accountancy bodies stated that the specific circumstances that need to exist for pension scheme financial statements not to be prepared on a going concern basis remain unchanged.
“However, it is likely that more schemes may need to disclose a material uncertainty relating to going concern due to the impact of the Covid-19 pandemic,” it added.
The guide, which is intended to support pension scheme auditors in navigating the additional challenges they are likely to experience as a result of the coronavirus crisis, is also helpful for pension scheme trustees and accounts preparers, the bodies noted.
The new guidance is relevant to private sector occupational defined benefit and defined contribution trust-based pension schemes in the UK, and covers topics such as the responsibilities for reporting to the Pensions Regulator, the impact of the Covid-19 pandemic on the control environment of pension schemes, and the trustees’ report and chair’s statement, among others.
David Fairs, executive director for regulatory policy, analysis and advice at TPR, said: “We welcome this guide as a useful tool for auditors and trustees facing challenges or difficulties while producing and auditing financial statements during the Covid-19 pandemic.
“Financial statements are an important way trustees can show that their pension scheme is run properly and well-governed.”
