Start date:
End date:
Location: Toronto
In June 2019, the Accounting Standards Board (AcSB) released an executive summary of discussions and decisions with respect to the topics addressed at this meeting.
The following topics were discussed:
Accounting Standards for Private Enterprises
Review the Executive Summary on the AcSB's Web site.
At its meeting on June 18, 2019 the AcSB considered feedback received from its Private Enterprise Advisory Committee and through outreach with actuaries on a draft of the proposals relating to the use of a funding valuation to measure the defined benefit obligation for defined benefit plans with a funding valuation requirement. The Board agreed that the defined benefit obligation should be measured at the amount that is required to be funded in accordance with legislative, regulatory, or contractual requirements. The AcSB also discussed a draft of the proposals relating to the use of a funding valuation to measure the defined benefit obligation for defined benefit plans for which there is no legislative, regulatory, or contractual requirement to prepare a funding valuation. For these defined benefit plans, the Board reconsidered the accounting policy choice in paragraph 3462.029C to measure the defined benefit obligation using an accounting valuation or a funding valuation. The Board understands that this accommodation to allow the use of a funding valuation for these defined benefit plans is causing diversity in practice. As a result, the Board tentatively agreed to remove this accommodation and plans to expose this proposed removal in the forthcoming exposure draft. The AcSB also considered the transitional provisions for the proposed amendments and confirmed that transitional relief should be provided. The AcSB plans to issue its Exposure Draft no later than the third quarter of 2019.
At its meeting on June 18, 2019 the AcSB considered feedback received from its Private Enterprise Advisory Committee and through outreach with actuaries on a draft of the proposals relating to the use of a funding valuation to measure the defined benefit obligation for defined benefit plans with a funding valuation requirement.
The Board agreed that the defined benefit obligation should be measured at the amount that is required to be funded in accordance with legislative, regulatory, or contractual requirements. The AcSB also discussed a draft of the proposals relating to the use of a funding valuation to measure the defined benefit obligation for defined benefit plans for which there is no legislative, regulatory, or contractual requirement to prepare a funding valuation. For these defined benefit plans, the Board reconsidered the accounting policy choice in paragraph 3462.029C to measure the defined benefit obligation using an accounting valuation or a funding valuation.
The Board understands that this accommodation to allow the use of a funding valuation for these defined benefit plans is causing diversity in practice. As a result, the Board tentatively agreed to remove this accommodation and plans to expose this proposed removal in the forthcoming exposure draft. The AcSB also considered the transitional provisions for the proposed amendments and confirmed that transitional relief should be provided. The AcSB plans to issue its Exposure Draft no later than the third quarter of 2019.
Review the Executive Summary on the AcSB's Web site.