Financial Times FT.com

Auditors urge rethink on pension calculations

By Norma Cohen and Jennifer Hughes

Published: December 30 2008 23:41 | Last updated: December 30 2008 23:41

Auditors are pressing companies to reconsider how they calculate their pension liabilities and urging them to use formulas that could give rise to much larger reported deficits than would be the case if they stayed with the current approach.

Market volatility has raised questions over the so-called “discount rate” used to calculate the present-day value of a fund’s future liabilities.

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