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Pension Obligations in the European Union: A Case Study for Accounting Policy

Author

Listed:
  • Biondi Yuri

    (Cnrs – IRISSO, University Paris Dauphine PSL, Place Marechal Lattre de Tassigny, 75016Paris, France)

  • Boisseau-Sierra Marion

    (DRM Finance, Université Paris-Dauphine, PSL Research University, Place du Maréchal de Lattre de Tassigny, Paris, France)

Abstract

Pension obligations constitute a critical issue for public finances and budgets. This is especially true for the European Union whose institutional mechanism aims to supervise Member States’ spending through centralised budgetary rules based upon financial covenants. In this context, accounting methods of recognition and measurement of pension obligations become an integral and critical aspect of Europe’s transnational budgetary and financial supervision. Drawing upon a comprehensive overview of pension management and regulation, this article aims to analyse the ongoing debate on accounting for pension obligations with a specific attention to the harmonization of European Public Sector Accounting Standards (EPSAS). While the European Commission has been favouring the ‘indisputable reference’ to the International Public Sector Accounting Standards (IPSAS), European Member States’ practices and views remain inconsistent with the normative solution imposed by the IPSAS 25, which favours and facilitates Definite Contribution pension schemes. In this context, we do summarise the IPSAS position mimicking the IFRS, review the pension’s accounting in national statistics and EPSAS debate, and provide some building blocks for a comprehensive model of accounting for pension obligations that admits and enables several viable modes of pension management.

Suggested Citation

  • Biondi Yuri & Boisseau-Sierra Marion, 2017. "Pension Obligations in the European Union: A Case Study for Accounting Policy," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 7(3), pages 1-27, December.
    • Handle: RePEc:bpj:aelcon:v:7:y:2017:i:3:p:27:n:5
    DOI: 10.1515/ael-2017-0027
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    References listed on IDEAS

    as
    1. Arnold, P. J. & Oakes, L. S., 1998. "Accounting as discursive construction: The relationship between statement of financial accounting standards no. 106 and the dismantling of retiree health benefits," Accounting, Organizations and Society, Elsevier, vol. 23(2), pages 129-153, February.
    2. Yuri Biondi, 2016. "The HM ‘Treasure's Island’: The Application of Accruals-based Accounting Standards in the UK Government," Accounting in Europe, Taylor & Francis Journals, vol. 13(1), pages 81-102, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    pension provision; pension benefit; pension liability; IPSAS; EPSAS; pension fund management; actuarial evaluation; public sector accounting regulation; public finances;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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