Financial Reporting Exposure Draft No 20 meaning

Financial Reporting Exposure Draft No 20 (FRED 20) describes the UK Accounting Standards Board’s November 1999 consultation proposals on how sponsoring employers should recognise and measure pension scheme assets and liabilities in their company accounts. It is not defined in legislation or case law; it is a standard‑setting draft referred to in accounting and pensions practice. FRED 20 proposed on‑balance‑sheet recognition of defined benefit obligations, measurement of scheme assets at fair value, and immediate recognition of actuarial gains and losses outside profit and loss (then in the statement of total recognised gains and losses). These proposals led directly to FRS 17 (Retirement Benefits), which replaced ssap 24. FRS 17 has since been superseded: IFRS reporters apply IAS 19 (Employee Benefits) and current UK and Irish GAAP apply FRS 102 Section 28. FRED 20 remains relevant when reviewing historic financial statements, transaction due diligence, funding negotiations, covenant assessments and pensions litigation covering pre‑FRS 102 periods. Usage and effect were broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland, reflecting aligned UK/Irish GAAP at the time.