21 SEPTEMBER 1985, Page 20

Short-:circuited?

LIGHT upon Lucas, which hoisted its share price by giving itself a holiday from contributing to its pension fund (City and Suburban, last week). Bob Chadwick of Duncan C. Fraser, the eminent actuaries, tells me that it may not be so easy. The Accounting Standards Committee, he says, would like to see companies' accounts carrying a regular annual charge for pen- sion contributions. Even in a holiday year, that charge should still appear in the profit and loss account. There would then be a provision, in the statement of assets, re- flecting the fact that the payment had not been made. If, as is intended, this becomes an accounting standard, then (Mr Chad- wick says) 'the whole of the Lucas con- tribution holiday would not find its way into the profit and loss account — so maybe the share price over-reacted'.