Accounting for Pension Flows and Funds: A Case Study for Accounting, Economics and Public Finances
EGPA XII Permanent Study Group Public Sector Financial Management Workshop, Zurich-Winterthur (Switzerland), May 7-8, 2015
37 Pages Posted: 15 May 2015
Date Written: May 15, 2015
Accounting for pension obligations has been co-evolving with political and financial economic strategies aimed to prompt and promote active financial markets and institutional investors, as well as transnational harmonisation and convergence of accounting standards between private and public sectors. In this context, our article provides a theoretical analysis of accounting for pension obligations, drawing upon a comprehensive review of existing practice and regulation. The latter are still inconsistent with the actuarial representation that has been adopted by the IPSAS 25 (Employee Benefits) and the IAS 19 (Employee Benefits). According to our frame of analysis, a variety of viable modes of pension management exists and shall be acknowledged by accounting and financial regulations. Accounting (and financial economic) concepts and regulatory recommendations are then elaborated in view to clarify and improve on pension protection, that is, the assurance of continued provision of pension payments at their agreed levels under viable alternative modes of pension management.
Keywords: Pension provision, pension benefit, pension liability, IPSAS, EPSAS, pension fund management, actuarial evaluation, public sector accounting regulation, public finances
JEL Classification: H55, G23, G28, M41, M48, K23
Suggested Citation: Suggested Citation