Possible 2022 Revisions to the Standards for Pension Plans [Completed]
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Effective date: |
The amendments to Section 4600 are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2024. Earlier application is permitted. |
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Last updated: |
December 2022 |
Overview
At its meeting on September 15-16, 2021, the AcSB considered a project proposal that included advice from its Pension Plan Working Group.
The AcSB approved the project proposal to address:
- determining whether a statement of changes in pension obligations for defined contribution plans is required;
- determining the split or amalgamation date for pension plans;
- accounting for guaranteed annuity contracts (commonly known as “buy-in and buy-out” contracts);
- presentation of combination pension plans; and
- risk disclosures for investments in master trusts.
The amendments would affect pension plans applying the standards in Part IV of the Handbook, as relevant.
The proposals in the Exposure Draft would:
- clarify that a statement of changes in pension obligations is not required for defined contribution pension plans;
- provide guidance on determining the split or amalgamation date for pension plans;
- provide recognition, measurement, and disclosure guidance on the accounting for guaranteed annuity contracts (commonly referred to as “buy-in” or “buy-out” annuity contracts);
- clarify the presentation requirements for combination plans; and
- require additional risk disclosures for investments in master trusts.
The proposals would apply for annual periods beginning on or after January 1, 2023, with early application permitted.
On December 15, 2002, the AcsB issued the amendments to Section 4600, which (i) clarify that a statement of changes in pension obligations is not required for defined contribution pension plans; (ii) provide guidance on determining the split or amalgamation date for pension plans; (iii) provide recognition, measurement and disclosure guidance on the accounting for guaranteed annuity contracts (commonly referred to as "buy-in" or "buy-out" annuity contracts); (iv) clarify the presentation requirements for combination plans; and (v) require additional risk disclosures for interests in master trusts.
The amendments are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2024. Earlier application is permitted.
Other developments
December 2022
On December 15, 2002, the AcsB issued the amendments to Section 4600. The amendments are effective for annual financial statements relating to fiscal years beginning on or after January 1, 2024. Earlier application is permitted.
March 2022
On March 1, 2022, the AcSB released the exposure draft Pension Plans to obtain feedback on improvements to Section 4600, Pension Plans. The Exposure Draft proposes to clarify areas of ambiguity and introduce new guidance in areas where no guidance currently exists. The amendments would affect pension plans applying the standards in Part IV of the Handbook. Comments are requested by June 15, 2022.