Survey Finds Pension Scheme Liability Understated on Balance Sheets
Pension Capital Strategies (PCS) has presented the findings of the PCS Survey of Analysts’ Views on Pensions. This survey, conducted independently by PCS, gives an indication of how analysts’ view company pension liabilities and how pension scheme liabilities are factored into the research done by City analysts. The most significant finding is that many more UK analysts (41%) believe the pension scheme liability on a company’s balance sheet understates the true size of the liabilities, than believe (12%) it over-states the true size of the liabilities. This may indicate that companies with large pension liabilities are possibly seeing a greater impact on their share price than the IAS 19 numbers alone might suggest.