"Explosive" and "bombshell" are words used in the financial press to describe the changes mooted by the Accounting Standards Board ("ASB") as it issued its discussion paper concerning the reform of defined benefit accounting disclosures. Some have estimated that this could increase defined benefit scheme liabilities on FTSE 100 balance sheets by up to £90 billion, as assumptions used to account for pension scheme liabilities move more into line with those used by bulk-annuity providers.
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