29 June 2016 
Matt Sisson, Projects and Membership Manager
The long-awaited Financial Reporting Group guidance on selecting and proposing a discount rate for USS and SAUL deficit recovery plan liabilities is now available. BUFDG commissioned Mercer to undertake this work to help preserve auditor independence. However, the document is guidance, and it is fully the responsibility of each institution to decide upon the methodology of calculation and the selection of a discount rate to use in producing its accounting estimates. HEIs will already have calculated estimates and be content with the methodology and rates used in Financial Forecasts, draft budgets etc.
The documents will be updated in August in order to help with 2015/16 accounting and to enable 2016/17 forecasts to be updated and BUFDG intends to issue this guidance each year – in early May (to inform budgets and financial forecasts) and in August (for year-end).
There are a number of other conditions on which the advice is given. These, and the link to download the documents, are included in Karel’s post on the SORP discussion boards. Please read the post in full before downloading.
