147Accrued pension expenseU.K.
Where the underlying profits of a member of a multinational group for an accounting period reflect pension expense, the underlying profits are to be adjusted in accordance with the following steps—
Step 1
Determine whether income (expressed as a positive number) or expense (expressed as a negative number) has accrued to the member in respect of the pension fund in the period.
Step 2
Add the sum of contributions made to the pension fund by the member in the period to the result of Step 1.
Step 3
If the result of Step 2 is more than nil, reduce the underlying profits by that amount.
If the result of Step 2 is less than nil, increase the underlying profits by that amount (as expressed as a positive number).