The turmoil in the markets, originating in China during late February,
resulted in the highest single day increase in deficits under FRS17 of £11bn.
This prompted a resurgence in volatility levels, according to Aon, and weekly
deficit changes of £10bn have been common.
In the past year, UK pension deficits have tumbled by 45% to £26bn, and
British companies with 31 March accounting year ends will benefit from the
improvement, according to
“£10bn swings in the national deficit have occurred from one week to the
next,” said Marcus Hurd, senior consultant and actuary at Aon. “Companies
reporting a few weeks earlier would have reported losses over the year at a time
when the national deficit was almost double its current value at £50bn. This
shows the shortcomings of using a short-term basis to measure long-term
obligations under FRS17.”
While the overall pensions deficit has dropped over £40bn over the previous
two years, this masks the underlying volatility.
Chartered accountant Colin Adams rebuilt the AIM listed company’s finance team and helped turn the business around after a challenging period
Travis Perkins to close 30 branches and could cut as many as 600 jobs, the builders’ merchant said, as it warned on full year profits
O2's new CFO Patricia Cobian discusses the joined-up approach required to improve digital connectivity - and its vital role in improving the UK's economic growth prospects