The guidance, which looks at defined benefit or final salary schemes and the impact of accounting standard FRS17, admits that, although their liabilities must be disclosed in charities’ accounts, the way in which it is done has been open to interpretation.

Rosie Chapman director of policy and strategy at the commission said that the guidance woiuld bring clarity as to how charities can address pension funding commitments within their reserves policy statement. “The accounting requirements of the accounting standard have put the spotlight on the health of pension schemes generally,” she said. “The balance sheet disclosure of pension assets and liabilities has raised questions as to how a charity’s reserves policy will be affected.”

The guidance, covers a range of issues inlcluding: