UITF Abstract 35 Death-in-service and Incapacity Benefits

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UITF Abstract 35 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and
Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more
information visit:


The consensus is that the cost of providing death-in-service and incapacity benefits should be recognised as a charge to operating profit to reflect the expected cost with any difference between expected cost and actual cost treated as an actuarial gain or loss.

Where the benefits are provided through a defined benefit scheme and are not wholly insured the uninsured liability and the cost for the accounting period should be measured using the projected unit method. 

Last updated 21 June 2015