Commission Highlights Pensions Impact On Charity Reserves

Commission Highlights Pensions Impact On Charity Reserves: "Commission Highlights Pensions Impact On Charity Reserves

It also examines how requirements to fund pensions and the resulting cash flow implications impact on both charities' reserves and their risk management strategies.

The Charity Commission today published guidance on the impact of defined benefit pension scheme liabilities on charities' reserves policy.
These schemes, often known as 'final salary' pension schemes, can affect charities' reserves policies and must be disclosed in charities' accounts, but the way in which this is done has been open to interpretation.
Today's guidance, developed jointly with The Charity Finance Directors' Group (CFDG), looks at how these pension liabilities influence reserves policy and reporting."