The AcSB proposes, subject to comments received following exposure, to amend Section 4600, Pension Plans in Part IV of the CPA Canada Handbook – Accounting (the Handbook). This amendment would provide relief from certain investment disclosure requirements for guaranteed annuity contracts, commonly referred to as “buy-in” annuity contracts. This amendment would affect pension plans applying the standards in Part IV of the Handbook, as relevant.
Pension plans are currently required to provide the following for investments that are financial instruments:
- the disclosures required by IFRS 7 Financial Instruments: Disclosures in Part I of the Handbook; and
- the fair value disclosures required by the Appendix to Section 4600.
The AcSB is proposing to limit this requirement to only those investments that are financial instruments measured at fair value. Following the amendments to Section 4600 issued in December 2022, all investments would be measured at fair value except for buy-in annuity contracts.
The proposals would apply for annual periods beginning on or after January 1, 2024, with earlier application permitted.