The International Accounting Standards Board is proposing to rush through new rules that would eliminate a sharp divide in the way pensions are accounted for across Europe, which can often leave companies facing higher deficits than peers in neighbouring countries.

The IASB has issued proposals to bring the measurement of pension scheme liabilities in line across all countries. As it stands, those nations with relatively shallow corporate bond markets are forced to use government-issued debt to measure whether pension schemes are in surplus or deficit.