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Accounting Standards for Pension Plans

Pension Plans

Summary

Pension plans and benefit plans that have characteristics like pension plans and provide benefits other than pensions, apply the accounting standards for pension plans in Part IV of the CPA Canada Handbook – Accounting.

These entities are publicly accountable enterprises, but they are required to apply a separate set of Canadian standards rather than IFRS® Standards.

This was determined by the AcSB, as the Board concluded that IAS 26 Accounting and Reporting by Retirement Benefit Plans did not provide adequate guidance for such entities.

The AcSB intends to maintain Part IV until the International Accounting Standards Board replaces IAS 26. Section 4600, Pension Plans, in Part IV of the Handbook refers to either IFRS Standards in Part I of the Handbook, or accounting standards for private enterprises in Part II of the Handbook.

As a result, pension plans should monitor activities related to the standards in Part I or Part II, since amendments made to those standards may affect them.

Staff Contact(s)

Amanda Winter, CPA, CA Principal, Accounting Standards Board

Shalini Gupta, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Developments in this sector are monitored to determine when an improvement project should start and for signs that emerging new types of pension plans requiring standard-setting attention are appearing in the marketplace

    The AcSB is working with other jurisdictions to advance the collective understanding of global developments in this area

  • Approving project

    In September 2021, the AcSB approved a project to address some of the issues raised by stakeholders

  • Engaging Communities

    Exposure Draft issued in March 2022

    Public outreach took place from April-June 2022

  • Deliberating feedback

    AcSB deliberated feedback in July-September 2022

  • Final pronouncement

    Final amendments issued in the CPA Canada Handbook – Accounting on December 16, 2022

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.