Principles-based approach to accounting for non-traditional pension plans
Nov 29, 2018
On November 29, 2018, CPA Canada released an article on how potential accounting guidance reflecting the risk assumed by employers could have a significant impact on their financial positions.
The evolution of Canadian public sector pension plans over the years has resulted in employers sharing different degrees of risk with their employees and/or other employers. These plans are referred to as “non-traditional pension plans” in the Public Sector Accounting Board (PSAB)’s Invitation to Comment, “Employment Benefits: Non-traditional Pension Plans .”
The article discusses:
- Risk assumed by employers in traditional pension plans
- Risk assumed by employers in non-traditional pension plans
- A principles-based approach focuses on risk assumed by employers
Review the full article on the CPA Canada's website.
