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Report - Fire Brigades Union

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SECTION K — ACCOUNTS 2010 AND FINANCIAL STATEMENT<br />

Notes to the Accounts<br />

For the year ended 31 December 2010<br />

8 Pension Scheme Contributions (continued)<br />

Under FRS17 the operating costs of providing benefits, the service costs, and the interest cost and expected return on assets are<br />

included in the income and expenditure account in the period in which they arise. Market fluctuations are set out as recognised<br />

gains and losses. The cash flow required to meet any deficit relates to future pension contributions and in the long term this is<br />

expected to rise. However the amount of any deficit is subject to considerable variation as it depends on a number of both<br />

demographic and financial assumptions.<br />

9 Taxation<br />

The union is not liable to tax on income from its members. Taxation is payable to the extent that investment income and capital<br />

gains exceed allowable provident benefits.<br />

178 FBU Annual <strong>Report</strong> 2011

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