Pension Plans 2023 Annual Improvements [Completed]
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Effective date: |
The amendments are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2024. Earlier application is permitted. |
Overview
At its meeting on April 25, 2023, the AcSB discussed feedback from its Pension Plan Working Group on disclosures for buy-in annuity contracts under Section 4600, Pension Plans. In December 2022, Section 4600 was amended to introduce new guidance specific to buy-in annuity contracts. Those amendments require buy-in annuity contracts to be measured at a value equal to the related benefit obligation instead of at fair value.
However, the fair value disclosure requirements from IFRS 7, Financial Instruments: Disclosures, and the Appendix to Section 4600 were still required. The AcSB considered feedback from its Pension Plan Working Group that these disclosures may become less useful for buy-in annuity contracts once the December 2022 amendments take effect. The Board agreed with this feedback.
On May 3, 2023, the AcSB issued its Exposure Draft, “2023 Annual Improvements to Accounting Standards for Pension Plans” to provide relief from disclosure requirements under paragraph 4600.32 for investments that are financial instruments not measured at fair value. Comments were requested by June 2, 2023.
On November 1, 2023, amendments to Section 4600 were published in Part IV of CPA Canada Handbook.
Other Developments
May 2023
On May 3, 2023, the AcSB issued its Exposure Draft, “2023 Annual Improvements to Accounting Standards for Pension Plans” Comments are requested by June 2, 2023.