摘要：We investigate whether new pension disclosures and subsequent full pension recognition
under FRS 17 and IAS 19 had any impact on pension asset allocation of UK companies. We
also compare pension asset allocation of UK companies to that of US companies prior to and
during the adoption of SFAS 158.
Both FRS 17 and IAS 19 require pension assets and liabilities to be valued by reference to
market conditions and the total surplus/deficit in the pension scheme to be recognized on the
balance sheet. Additionally, periodical actuarial gains/losses are required to be recognized
immediately in comprehensive income. Therefore, these standards introduce a large element
of volatility into company balance sheets and comprehensive income. The requirements in
FRS 17 and IAS 19 are similar to those of SFAS 158, which replaced SFAS 87 in December
2006.
We identify a Disclosure period as the period in which UK companies had to disclose all the
required data under FRS 17 in the notes to the financial statements without formally
recognizing the full pension surplus/deficit on the balance sheet. We also identify a Full
Recognition period starting one year prior to adoption until one year subsequent to the
formal adoption of either FRS 17 or IAS 19. We hypothesize that there exists a shift of
pension assets from equity to debt securities by UK sponsoring companies during the
Disclosure period of FRS 17 due to the higher visibility of pensions in the UK and the
anticipation of full recognition. We also predict a decline in pension funds allocated to
equity securities during the Full Recognition period, around the adoption of FRS 17 and IAS
19. Similarly, we predict a decline in pension assets allocated to equity securities during the
adoption of SFAS 158.
We find that UK companies modified their pension asset allocation policies by shifting
assets from equity to debt securities during both the Disclosure and the Full Recognition
periods. We also find that prior to the adoption of SFAS 158, US companies maintained a
stable allocation to equities and bonds. However, there is a shift from equity to debt
securities during the SFAS 158 Full Recognition period. Finally, we find that UK and US
firms with relatively larger pension schemes and larger magnitudes of actuarial gains/losses
shift more pension assets from equity to debt securities.
