Share
Flash – August, 2024
In December 2022 and November 2023, the Accounting Standards Board of Canada (AcSB) amended Section 4600, “Pension plans”, of the CPA Canada Handbook – Accounting. These amendments are the result of consultations held across Canada in 2018 and 2019 by the AcSB.
This issue of Flash provides a summary of the main amendments. However, it does not deal with all potential impacts of these amendments. Readers are encouraged to refer to Section 4600 before making any decisions.
Amendments in Section 4600 relate to the following:
- Clarify that a statement of changes in pension obligations is not required for defined contribution pension plans;
- Provide guidance on determining the split or merger [FL1] date for pension plans;
- Provide recognition, measurement and disclosure guidance on the accounting for guaranteed annuity contracts (commonly referred to as “buy-in” or “buy-out” annuity contracts);
- Clarify the presentation requirements for combination plans;
- Require additional risk disclosures for interests in master trusts;
- Provide relief from disclosure requirements for investments that are financial instruments not measured at fair value.
These changes are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2024. Early application is permitted. Any specificity related to transitional provisions, the case being, is described in the following sections.
-
Download the document Flash_Pension Plans_August 2024_P
Flash – Amendments to pension plans