Alan Hardie

The assumptions - discount rate
• FRS 17 states that
“Such a rate should be assumed to be the current rate of return on
a high quality corporate bond of equivalent currency and term to
the scheme liabilities.”
• Current rate – look at market yields at the Balance Sheet date
• High Quality – AA rate or equivalent status
• Currency – now the Euro for Irish schemes (may have liabilities in
other currencies)
• Term – the term of liabilities – may be very long
PricewaterhouseCoopers