SSAP 24 meaning

In legal and corporate practice, SSAP 24 refers to the former UK/Irish GAAP standard that governed how sponsoring employers accounted for defined benefit pension scheme costs in their financial statements. It required pension costs to be recognised on a systematic basis over employees’ service lives using actuarial valuations, with surpluses or deficits spread through the profit and loss account and reflected as prepayments or accruals, rather than recognising the scheme’s net asset or liability in full on the balance sheet. The term is not defined in legislation or case law; it is the title of a historical accounting standard. SSAP 24 has been withdrawn and was replaced by FRS 17 (from 2005), and subsequently by IAS 19 (for IFRS reporters) or FRS 102 (for UK and Irish GAAP), which require balance sheet recognition of the net defined benefit asset/liability and enhanced disclosures. Usage and effect were broadly consistent across England & Wales, Scotland, Northern Ireland and Ireland. The term remains relevant when reviewing legacy accounts, pension scheme documents, share purchase agreements, warranties, indemnities and covenant assessments that still reference SSAP 24 “spreading” or deficits/surpluses.